Employment data released this week showing underlying weakness in America’s jobs market may be the foundation for new interest rate cuts from the Fed early next year, according to UBS.
The release from the U.S. Bureau of Labor Statistics yesterday, delayed as a result of the government shutdown, showed nonfarm payroll employment added just 64,000 jobs in November, relatively unchanged from April. Meanwhile, the unemployment rate continued its steady climb higher in the latter part of this year, and now sits at 4.6%.
The data painted a strained picture as we round out the year. For example, the number of people employed part-time involuntarily was 5.5 million in November, an increase of 909,000 on the month prior. These individuals, the Bureau of Labor Statistics (BLS) explained, would have preferred full-time employment but are working part-time because their hours were reduced or they were unable to find full-time jobs.
Elsewhere, the unemployment rate among teenagers was up month on month to 16.3%, while the number of people jobless for less than five weeks was 2.5 million in November, up by 316,000 from September. This suggests that labor market entrants and those bouncing from job to job are having a tough time landing more sustainable roles.
