A builder sands the body of a guitar at the Fender factory, in Corona, California, on October 6, 2022. Industries sensitive to rising interest rates have been slowing hiring.Hiring slowed only slightly in November, as rising interest rates weighed on businesses, but the U.S. job market remains unusually tight.released Friday shows employers added 263,000 jobs in November — down only modestly from a revised 284,000 jobs added the month before.
"The Fed has essentially said that they need to see a cooler job market to help reduce those inflationary pressures," House said. Ordinarily, the Fed's rate hikes would be felt most acutely in interest-sensitive industries such as construction and manufacturing. But construction companies added 20,000 jobs in November while factories added 14,000.
"I think this is still a soft contraction," Fiore said."I'm really hopeful that some amount of demand will come back. There's still pretty robust production plans for 2023." "Despite a smattering of news headlines on corporate announcements of layoffs, the four-week moving average of initial jobless claims is still lower now than it was over the summer," said Nela Richardson, chief economist at the payroll processing company ADP.One reason the labor market is so tight is that while jobs rebounded quickly from the pandemic recession, the workforce has not. The labor force actually shrank in November by 186,000 people.