IRVINE, CA—With Friday's release of the Bureau of Labor Statistics (BLS) November Employment Situation report, economists saw an increase in average monthly gains, marking a new record high for the recovery.
Chris Muoio, senior associate and economist with Auction.com Research, offered the following analysis:

"The BLS released November employment data today, and it appears Christmas has come early for commercial and residential real estate. November saw a massive 321,000 jobs added, crushing expectations, and marking the strongest monthly gain since January of 2012. The report also included upward revisions to September and October, adding a total of 44,000 jobs to those months. This brings the average monthly gain this year to 240,000, a new high for the recovery.

Unemployment remained stable in November at 5.8%, its lowest for the cycle. Labor force participation remained flat from the month prior as well, measuring 62.8%, on par with its lows for the cycle. However, other measures are pointing to diminishing slack in the labor market. Average hourly earnings saw a 0.4% increase in the month, double of predicted expectations. While this is a good initial burst, wage growth remains muted on an annual basis, measuring 2.1%, and will need several more months to establish a firm trend. Improving wage growth would be an elixir to the housing market, which has seen price appreciation stall as affordability has diminished.