U.S. nonfarm payrolls increased by 228,000 in November, more or less in line with the October gain. The unemployment rate, which is calculated from the household survey, remained at 4.1%, the same level as in October.

The long-term unemployed (defined as persons unemployed for more than 27 weeks) were accounted for 23.8% of total unemployment in November versus 24.8% in October. The U6 unemployment rate, which accounts for both unemployed and underemployed workers, was 8.0% in November versus 7.9% in October.

Wages have been slowly creeping up in the U.S., but the wage gains are hardly keeping up with the low rate of inflation. Over the last 12 months ending November, average hourly earnings rose 2.5% compared with a 2.3% gain as of October.

 Despite the obvious signs of a long-term leveling off in monthly job creation, the economy’s job market is quite tight.

Therefore, the Fed felt obliged to increase the federal funds rate another 25 basis points in December. Obviously, more rate hikes can be expected in 2018.