The US labor market remains tight in November

Despite the Federal Reserve's efforts to slow the economy, the US economy created more jobs in November than was anticipated, showing that there is still a high need for new employees.

In contrast to the 200,000 predicted increase, non-farm payrolls increased by 263,000 last month, according to the Bureau of Labor Statistics. In comparison to the upwardly corrected 284,000 increases in October and the 269,000 increase in September, these statistics represented a decline.

The unemployment rate held unchanged at 3.7% despite these improvements.

Following the announcement of the data, the US dollar index increased 0.8% on speculation that the report will increase pressure on the Fed to continue raising interest rates. The blue-chip S&P 500 stock index futures dropped 1.5%, while the steep sell-off in US government bonds raised yields. The two-year Treasury yield, which is influenced by expectations for interest rates, increased by 0.11 percentage points to 4.37 percent.

The housing market has deteriorated, consumer demand has already started to slow down, and job losses in the technology industry have been widespread. Though the Fed's benchmark policy rate is now approaching 4%, the economy as a whole has demonstrated unexpected resiliency.

The central bank has indicated that it will stop raising rates by 0.75 percentage points and switch to a half-point increase in December. As long as the Fed maintains interest rates at current levels, economists anticipate that the jobless rate will approach 5% next year.