New Delhi, Feb. 24 -- Lately economists have been vigorously debating the health of America's labour market. Some argue that the jobs market is weakening, portending a downturn and requiring further interest-rate cuts from the Federal Reserve. Others disagree. And with inflation still above the Fed's target, they say, the central bank should hold fire.

At first glance November's jobs figures, published on December 16th after a delay caused by the recent government shutdown, appear to lend support to the employment pessimists. Unemployment increased to 4.6%, from 4.4% in September. And workers in at the margins of the labour market in particular are struggling, a development which in the past has been a warning sign of a wider downturn. J...