If the stock market has gotten off to its worst four-day start in our lifetimes, then you would probably just assume that the economic numbers are universally bad. There have been negative or slow growth numbers, but don’t bother telling this to the U.S. jobs market. The U.S. Department of Labor reported that nonfarm payrolls rose by a sharp 292,000 in December.
Bloomberg was calling for a mere 200,000, and other estimates had been closer to 210,000. The highest Econoday economist estimate was down at 249,000. Investors may scratch their head here, and if it was around an election you might imagine that at least some of the talking heads might question the accuracy of this number and the higher revisions.
The unemployment rate was flat at 5.0% in December, and the civilian labor force participation rate was up by 0.1% at 62.6%.
Even the private sector payrolls, the real growth barometer of jobs, rose by 275,000 in December. Bloomberg was calling for 193,000 and the highest Econoday economist estimate was 246,000.
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Average hourly earnings were flat in December, while Bloomberg had called for a 0.2% gain, and the average work week was flat and right in line with estimates at 34.5 hours.
What stood out about the payrolls reports was that another 41,000 were added to the November nonfarm payrolls figures to 252,000, and the private sector payrolls were revised to 240,000 from 197,000 in November.
We know these weren’t oil jobs being added to the economy. The gains were seen in the professional and business services sector, with a gain of 73,000. Construction added 45,000 to the payrolls in December.
Friday’s report might lead to more support for the Federal Reserve presidents who keep talking about the need to raise interest rates. That hasn’t helped the markets this week.
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