Analysis: Nonfarm payroll data confirms the Federal Reserve's assertion that the labor market is not the source of inflation

According to Odaily, data released by the U.S. Bureau of Labor Statistics on Tuesday showed that non-farm employment growth in November was slightly higher than expected. The release of this data was delayed due to a government shutdown. The number of new jobs added during the month was 64,000, better than the Dow Jones expectation of 45,000. The unemployment rate rose to 4.6%, higher than anticipated. The Bureau of Labor Statistics also released preliminary data for October, showing that non-farm employment decreased by 105,000. Although there was no official forecast, Wall Street economists generally expected a decline in employment for October, following an unexpected increase of 108,000 in September. Despite these complexities, the report paints a labor market situation similar to previous periods. The employment situation remains characterized by both low hiring and low layoffs. From a policy perspective, the Federal Reserve faces a difficult choice as it must strive to prevent further weakening of the labor market while also avoiding a further worsening of persistently high inflation. Federal Reserve officials have consistently stated that the labor market is not the source of inflation, and today's employment report confirms this view.