US companies added the largest number of employees in nearly three years in the month of November and wage gains picked up, signaling a hike in interest rates anytime soon by the Federal Reserve.
The US Labor Department report, which was released on Friday, showed that the nonfarm payrolls jumped by 321,000 last month, the most since January 2012.
On the other hand, the rate of unemployment held steady at a six-year low of 5.8 percent.
Robert Dye, chief economist at Comerica in Dallas, said, “This greenlights a Fed lift-off in mid-2015.”
The data for two previous months -September and October- were revised to show 44,000 more employment opportunities created than reported earlier, adding more glint to the jobs report.
The Wall Street’s expectations of an increase of only 230,000 blew by the job gains reported in November.
The job gain in November has marked the 10th consecutive month when employment growth has exceeded 200,000, which is the longest stretch since 1994.
The job growth for the 10th straight month also signals that the US economy is withstanding the slowdowns in euro zone and China and the recession in Japan.
A separate Commerce Department report showed exports rose 1.2 percent in October, contributing in the narrowing of the trade deficit. The US economy surpassed the 2.33 million employments created in 2013 by adding 2.65 million jobs over the last 11 months.
Chris Rupkey, chief financial economist at MUFG Union Bank in New York, said, “The economy is literally blasting off. It’s heading in the right direction and the outlook is a solid one.”
The job report signaled at a strengthening labour market and faster wage growth, a key factor that will help the US central bank to determine when to start lifting borrowing costs.