U.S. businesses and other employers added a healthy 199,000 jobs last month and the unemployment rate fell, fresh signs that the economy could achieve an elusive “soft landing,” in which inflation would return to the Federal Reserve’s 2% target without causing a steep recession.
Friday’s report from the Labor Department showed that the unemployment rate dropped from 3.9% to 3.7%, not far above a five-decade low of 3.4% in April. The jobless rate has now remained below 4% for nearly two years, the longest such streak since the late 1960s.
Last month’s increase was inflated by the return of about 40,000 formerly striking auto workers and actors, who were not at work in October but were back on the job in November.
Dang, this is exactly what we want. Unemployment staying low while new jobs added comes down a little. So we are still growing but not so fast that it’ll cause more inflation.