November is seeing the lowest level of unemployment since President Barack Obama entered the White House with 203,000 jobs added in November alone, the New York Times reported.
In the past three months before November, employers hired at least 200,000 in comparison to the month of July in which only 98,000 jobs were created, according to the Times.
The unemployment rate for November was 7 percent, and September and October created 8,000 more jobs than initial evaluations showed, the Times reported. Employment gains across the board, rising hourly earnings and work weeks becoming longer also contribute to the rise.
According to the Times, peaks in job creation and low unemployment have caused false alarms in early 2011 and 2012, but the increase in hiring ended weakly.
Due to the higher than expected reported, experts are indicating the Federal Reserve will slow down the stimulus efforts sooner with policy makers probably meeting to discuss it in 2014 instead of later this month, the Times reported.
Michael Woolfolk, a senior currency strategist at BNY Mellon in New York told Reuters the numbers will not cause the Fed to taper in December.
"We feel this is consistent with material improvement as regards unemployment, however, we've seen no improvement yet in participation," Woolfolk told Reuters. "The nonfarm payrolls number is probably not enough to persuade the Fed to taper in December. We still think the earliest they move is March."
The government shutdown in October may have caused the return of thousands of federal employees to impact the improvement in the unemployment rate for November, the Times reported.
The Chief Investment Officer of Windhaven Investment Management in Boston, Stephen Cucchiaro, said the report could have brought the idea of an earlier tapering forward, causing the "correcting" of the market, according to Reuters.
"The stronger-than-expected employment report could increase speculation that the Federal Reserve will taper earlier than expected, perhaps as early as their next meeting on December 17-18 - which is why the markets have been correcting in the last few days," Cucchiaro said, according to Reuters. "The Fed could point to falling inflationary expectations and increased fiscal uncertainty given the continued government gridlock as reasons to delay tapering."
A taper delay might cause a "year-end rally in stock."
