USA payrolls rose by 312000 in December as wage gains exceed forecasts

08 January, 2019, 10:14 | Author: Eric Barnett
  • The gains sent US stocks soaring Dow Jones Industrial Average ended Friday almost 3.3% higher S&P 500 rose 3.4% and Nasdaq jumped more than 4.2

Despite the strong pace of hiring, the unemployment rate crept up to 3.9% in December from the near 50-year low of 3.7% in the previous month.

The upbeat employment report from the Labor Department on Friday stood in stark contrast with reports this week showing Chinese factory activity contracting for the first time in 19 months in December and weak manufacturing across much of Europe. The most recent inflation data from November using the Federal Reserve's preferred Personal Consumption Expenditure (PCE) price index found that prices increased by 1.8 percent - suggesting that real wages are rising (December inflation data will be available later this month).

The pumped-up jobs number for "retail trade" (+24,000) is noteworthy because of the time of year. Average hourly earnings rose 3.2% from a year earlier, more than projected and matching the fastest pace since 2009. Employers increased hours for workers, pushing the average workweek up to 34.5 hours from 34.4 hours in November.

The ripple effects from slower growth overseas could eventually hurt the USA economy, David Dollar, a senior fellow at the Brookings Institution, told NPR's Scott Horsley.

Last month, stakeholders also predicted that job growth had reached its peak with November's addition of 155,000 jobs (revised now to 176,000) marking the start of growth slow.

US employers dramatically stepped up hiring in December, adding 312,000 jobs in an encouraging display of strength for an economy in the midst of a trade war, slowing global growth and a partial government shutdown.

"Friday's payrolls numbers suggest a healthier United States economy than some investors had anticipated", it said.

U.S. employment increased by 312,000 jobs in December, and the unemployment rate rose to 3.9%, according to the U.S. Bureau of Labor Statistics.


"The labor market is very strong even though the economy appears to be slowing", Eric Winograd, an economist at AllianceBernstein, said. "Favorable December weather also helped lift the job market". The industry saw a boom of 346,000 for the year, compared with a 284,000 gain the year before. In 2017, by comparison, manufacturing had added 207,000 jobs.

Construction also was one of the big gainers despite a slumping housing market.

The US has now added jobs for 99 consecutive months - the longest streak since records began. Hiring last month jumped in healthcare, bars and restaurants, construction and, notably, in manufacturing, especially for durable goods, fabricated metal products and computers and electronics - all sectors that complain of lower profits and lost sales due to global trade tensions.

Government jobs saw a gain of 11,000.

Those revisions brought the three-month average up to a strong 254,000.

Republican lawmakers attributed the job growth to the tax reforms undertaken by the Trump administration about a year ago.

Futures traders expect the Fed to hold steady through the year, and in fact are pricing in a 45 percent of a rate cut by the end of 2019.

There were job gains across many industries in December, including significant gains in education and health services (82,000), leisure and hospitality (55,000), and in manufacturing (32,000).

Recommended:



Popular

US says airstrike targeted militant tied to USS Cole bombing
He was recaptured in March 2004 and sentenced to death, but almost two years later he managed to escape a second time. The FBI has been offering a reward of up to $5 million for information that would lead to his arrest.

Police file charges in death of 7-year-old girl
Texas police have arrested a man suspected of driving the getaway auto in the drive-by killing of 7-year-old Jazmine Barnes . How do I feel? Black allegedly cooperated with the investigation and said the pistol used in the shooting was in his home.

Ferrari confirm Binotto replaces Binotto as Team Principal
It remains unclear who will fill the void left by Binotto's promotion from technical director. Rival teams had been linked with approaches for the 49-year-old in recent months.

Jets interview former Dolphins coach Adam Gase | AP sports
Like Manning, the Packers have another of the most accomplished passers in recent years, 35-year-old QB Aaron Rodgers . According to multiple reports, Flores interviewed with the Miami Dolphins on Friday.

China's Xi calls on military to be battle-ready
Reportedly, the main bone of contention discussed was trade conflicts and status of Taiwan with the United States . According to Tsais make his words clear that Beijing for Taiwan have the principle of "One country, two systems".

Here’s the First Look of Vivek Oberoi’s Narendra Modi Biopic
Veteran actor Paresh Rawal was initially roped in to play the role of Modi, but the actor backed out due to unknown reasons. Directed by critically acclaimed director Omung Kumar, the film poster of PM Narendra Modi was revealed today.

Samsung smart TVs are getting iTunes and AirPlay 2 support
It is already possible to do something similar by asking Siri to play a song from Apple Music on an Airplay 2 compatible speaker. If you're an Apple user with a new Samsung Smart TV at home, you may soon play your iTunes content on the big screen.

World Bank President Jim Yong Kim resigns
The World Bank says he will be succeeded February 1 on an interim basis by Cristalina Georgieva, its chief executive officer. The Trump administration has put pressure on the World Bank to justify its lending practices, including loans to China.

Asus reveals new Chromebooks and Chrome OS tablet ahead of CES
I wasn't able to use the HP Chromebook 14 in guest mode after a reboot, which is the ideal testing scenario for maximum scoring. It will have a 14-inch 1,366 x 768 display with a 180-degree hinge, along with 4GB of RAM and 32GB of SSD storage .

Alexander-Arnold tells Liverpool to be inspired by Manchester City
When Liverpool equalised there were enough City defenders around to prevent it. "Of course Liverpool are out of the Carabao Cup, so they have more time to prepare for the Premier League , but (for us) it is what it is".