In addition, deportations may be impacting the numbers and leading to lower job growth, but in a way that might present lower economic risk. That said, unemployment continues to move up, now to 4.6% and even though the increase has been gradual up to November’s report, rising unemployment has historically elevated recession risk.

The Fed lowered its benchmark interest rate by a quarter percentage point, in an effort to shore up a weakening job market. With inflation remaining stubbornly high, it was not a slam dunk decision.

Fed officials have been divided about whether to boost the job market by further lowering interest rates, and a surprise uptick in the unemployment rate Tuesday wasn't enough to resolve the debate.

A decrease in oil supply drives up oil prices, which can raise unemployment and inflation. To counter adverse effects on inflation, a central bank may choose to increase its policy rate, potentially reducing economic activity further.

South African annual inflation unexpectedly softened in November, edging closer to the central bank’s new 3% target and boosting hopes for an interest-rate cut next month. Bonds rallied.