WASHINGTON — The fresh data offered a key clue about the health of the economy as the nation hurtles toward end-of-the-year holidays and the inauguration of President-elect Donald Trump. The findings could also help determine whether the Federal Reserve cuts interest rates when officials meet later this month.
U.S. hiring has defied doomsayers for years. Stubborn inflation, high interest rates and a contentious presidential campaign have proven no match for a resilient labor market.
A weaker-than-expected reading may have raised alarm and caused observers to revisit disappointing results in October, which many economists have attributed to one-off disruptions of data collection.
The data appeared to offer little more than a blurry snapshot due to data-gathering disruptions, however. A combination of hurricanes and work stoppages likely caused an undercount of hiring that month, experts told ABC News.
Overall, inflation has eased and the economy has expanded, giving rise to hope that the U.S. could achieve a soft landing.
U.S. GDP grew at a 2.8% annualized rate over three months ending in September, U.S. Bureau of Economic Analysis data last month showed. That figure fell slightly below economists' expectations, but demonstrated brisk growth that was propelled by resilient consumer spending.
The Fed is expected to cut interest rates by a quarter of a percentage point, according to the CME FedWatch Tool, a measure of market sentiment.