10:41 AM EST, 12/06/2024 (MT Newswires) -- The US economy added more jobs than expected in November while the unemployment rate edged higher, according to government data released Friday.

Total nonfarm payrolls climbed by 227,000 last month, the Bureau of Labor Statistics reported. The consensus was for a 220,000 increase, according to a survey compiled by Bloomberg. Gains for October were revised up by 24,000 to 36,000 and by 32,000 for September.

The unemployment rate rose to 4.2% from October's 4.1%, which was the market view for November.

"Growth in nonfarm payrolls rebounded more than expected in November, and upward revisions to October and September pushed trend job growth higher," Oxford Economics Lead Economist Nancy Vanden Houten said. "The household data was weaker, with employment falling sharply for a second month in a row and the unemployment rate ticking higher."

Private payrolls rebounded to 194,000 additions in November following a decline of 2,000 the month prior, but missed the consensus of 205,000 on Bloomberg. The service industry added 160,000 jobs last month, up from a 42,000 rise the BLS posted for October. The goods-producing sector recorded 34,000 job additions after a 44,000 drop.

Manufacturing payrolls returned to positive growth territory reflecting the end of the Boeing (BA) strike early in November, according to Vanden Houten. Job growth rebounded in most sectors that were impacted by recent hurricanes. Hurricane Helene made landfall on Florida's Gulf Coast late in September, while Milton struck Florida in October.

Average hourly earnings grew by 0.4% sequentially, the BLS report showed, ahead of the 0.3% pace modeled by the Street. The annual measure increased by 4%, above expectations for growth of 3.9%.

The Federal Reserve is still expected to lower rates by 25 basis points on Dec. 18, though the Federal Open Market Committee is expected to "proceed more cautiously in 2025 and skip cutting rates in January, according to Vanden Houten.

Earlier in the week, Fed Chair Jerome Powell reportedly said the US economy is strong, potentially allowing the FOMC to be cautious with easing monetary policy.