(Bloomberg) -- Here are the key takeaways from the US employment report for November released Friday.

• The data came in better than expected, with signs of a strong labor market across the board: Payrolls rose 199,000 in the month, more than the 185,000 average estimate of economists. The unemployment rate tightened to 3.7%, below all forecasts and a four-month low. And the participation rate ticked up to 62.8%. Weekly hours also rose, a sign of demand.
• Average hourly earnings rose 0.4% from the prior month, matching the high estimate from analysts. This is great for workers, but a troubling sign for the Federal Reserve, as they seek to cool inflation and spending.
• Job gains were led by health care, government and manufacturing. Payrolls got a 30,000 boost from auto workers returning from the picket lines. Government hiring was led by state and local bodies. And as we’ve seen over the past year, health-care gains were driven by demand in home care. Payrolls also got a boost of 17,000 from the resolution of the Hollywood labor dispute.
• This report, especially if this kind of strength is repeated in December, complicates the Fed’s outlook. Payrolls and labor demand were expected to start slowing, but the opposite happened. What this report makes clear is that the labor market is strong, consumers are in a great place to keep spending and there are few signs of recession — at least judging by job data.
• S&P 500 and Nasdaq futures initially plunged in the minutes after the report was published, before moderating as markets digested the data. Two-year treasury yields rose about 9 basis points earlier.

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