The U.S. labor market demonstrated continued resilience in November, bolstering the likelihood of a Federal Reserve rate hike later this month. Nonfarm payrolls rose by 211,000, surpassing economists’ estimates of 200,000.

The unemployment rate remained steady at 5.0%, a level considered by many to be near full employment. The labor force participation rate, which measures the proportion of Americans working or seeking work, also held steady.

Key highlights from the report include:

• The average workweek for all employees on private nonfarm payrolls was unchanged at 34.5 hours.
• Average hourly earnings for all employees on private nonfarm payrolls rose by 0.2%.
• Notable job gains occurred in construction, professional and business services, and healthcare.

Analysts believe that this strong jobs report provides further justification for the Federal Reserve to raise interest rates at its December meeting. The Fed has kept rates near zero for nearly seven years in an effort to stimulate economic growth following the 2008 financial crisis.

A rate hike would signal the Fed’s confidence in the strength of the U.S. economy and its ability to withstand tighter monetary policy. However, some economists caution that raising rates too quickly could stifle economic growth and potentially trigger a recession.