U.S. job growth accelerated in November, but the Federal Reserve may cut interest rates again this month

U.S. job growth surged in November after being severely disrupted by hurricanes and strikes, but that may not signal a material shift in job market conditions. The employment situation is expected to continue to slow steadily and allow the Federal Reserve to cut interest rates again this month. The Labor Department's non-farm payrolls report released on Friday showed that the number of non-farm payrolls increased by 227,000 in November, and the data in October was revised up to 36,000. The unemployment rate climbed to 4.2% after holding at 4.1% for two consecutive months. Average hourly earnings were flat from the previous month at 0.4%. With the economy continuing to expand at a healthy pace, inflation running above the central bank's 2 percent target, and policy uncertainty in the incoming administration of US President-elect Donald Trump, the outlook for further rate cuts in 2025 is unclear. Traders are betting on two more cuts next year, with a third by the end of 2025 more than half likely.