U.S. employers added more jobs than forecast and wages surged by the most in nearly a year, pointing to enduring inflation pressures that boost chances of higher interest rates from the Federal Reserve, Bloomberg News reported. Nonfarm payrolls increased 263,000 in November after an upwardly revised 284,000 gain in October, a Labor Department report showed Friday. The unemployment rate held at 3.7% as participation eased. Average hourly earnings rose twice as much as forecast after an upward revision to the prior month. The median estimates in a Bloomberg survey of economists called for a 200,000 advance in payrolls and for the unemployment rate to hold at 3.7%. US stocks opened lower and Treasury yields surged as investors anticipated a more aggressive stance from the Fed. “The net read is that the labor market is still far too tight and cooling only very gradually,” Mizuho economists Alex Pelle and Steven Ricchiuto said in a note. “It suggests that the economy is resilient and can handle more rate hikes and restrictive policy for longer.”
