December jobs report: 312,000 jobs added in December
08 January, 2019, 03:39 | Author: Brooke Harris
Providing the latest snapshot of the USA economy, the Labour Department's December employment report out Friday will likely show hiring and wages picked up at the end of 2018.
A strong employment report could offer some relief to global markets, which have reeled in recent months from a flood of concerns including slowing economic growth.
"A substantial surprise in the jobs number, either higher or lower, would likely elicit a significant market reaction", economist Veronica Clark said in a note.
"The ADP employment report has been susceptible to large swings in December that we think may be in part due to a year-end quirk that has tended to result in ADP printing high relative to payrolls in the final month of the year", said John Ryding, chief economist at RDQ Economics in NY.
Businesses hired a stunning 312,000 workers in December, capping off a year of robust economic growth, the Labor Department said Friday. There were also broad gains in hiring last month.
U.S. job growth likely picked up in December with wages expected to have increased solidly, which could help to allay a recent upsurge in fears about the economy's health that have roiled financial markets. Average hourly pay was up 3.2% compared to a year earlier. That lifted the annual increase in wages to 3.2 percent, matching October's gain, from 3.1 percent in November. The average work week rose 0.1 hour to 34.5 hours.
The unemployment rate rose from 3.7 percent to 3.9 percent because more people were looking for jobs in December. Fewer workers worked part-time for economic reasons in December. The unemployment rate among people eligible for benefits was unchanged at 1.2 percent.
The strong employment report likely keeps the Federal Reserve on course to continue raising interest rate this year, deepening its rift with Wall Street and Trump, who has chastised the Fed and its chairman, Jerome Powell, repeatedly for the rate increases.
"The claims data suggest that conditions in the labor market have softened relative to a few months ago when the claims readings were very upbeat, but the extent of any deterioration is not entirely obvious and does not look extreme at this point", said Daniel Silver, an economist at JPMorgan in NY. Powell said the US central bank was "always prepared to shift the stance of policy and to shift it significantly" if necessary.
The U.S. central bank raised rates four times in 2018. "An upside surprise could increase market expectations for rate hikes in 2019, while a downside surprise could lead markets to price a higher probability that exceptional US growth is not immune from declining equity prices and slowing global growth".
The U.S. government shutdown and Trump's attacks on the Fed and its chairman over the central bank's rate increases have also anxious investors, though Powell may have eased some of those concerns Friday when he stressed that he would not resign if the president told him to do so.
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 week included Christmas and preceded New Year's Day.
The December jobs gain pushed total USA employment above 150 million jobs for the first time.
The Labor Department has not been affected by the partial shutdown of the US government and will continue to publish economic data complied by its statistics agency, the Bureau of Labor Statistics.
The government is about to enter its third week of a partial shutdown, with negotiations stalled over President Donald Trump's insistence that Democrats agree on funding for a wall along the border with Mexico. The latest monthly jobs shows that the economic weakness causing stock markets to drop isn't yet visible in the employment figures. Job growth averaged 220,000 per month in 2018.
But the expected continuation of steady job growth suggests that such risks might be - for the moment, anyway - overblown. Anecdotal evidence has been growing of companies experiencing difficulties finding workers, and raising wages to retain and attract employees. The government shutdown, if it extends beyond next week, could weigh on January payrolls.
A large portion of the growth occurred in health care, construction, food services, retail trade and manufacturing. The ISM manufacturing index fell 5.2 percentage points in December and an index measuring new orders tumbled 11 percentage points.
More broadly, the US labor market is extraordinarily tight, leaving businesses reluctant to let workers go.
What began as a protest about a fuel tax back in November has escalated into widespread anger at rising living costs. The movement's leader Eric Drouet was arrested for a second time late on Wednesday.
However, they have instead taken measures to ensure Manchester United don't end up signing the forward in years to come. It has been widely believed that Spanish giants Real Madrid have always been interested in his services.
There was an acute shortage of stocks in all countries and the company had a tough time to deal with production related woes. The User will be able to execute commands from Alexa or Google Assistant but the built-in voice helper will be Bixby.
That group includes Minnesota (18-21), which needs to beat teams like the Lakers as often as possible just to stay in the race. Of course, LaVar has no problem telling anyone who will listen that he could go toe-to-toe with Michael Jordan.
I owe you nothing. "To me, to my relatives and to those who believed in me, for the others, you were only pebbles in my socks". German tabloid Bild reported that the meal was in Dubai where Salt Bae owns the Nusr-Et restaurant.
Kanter has been a vocal critic of Mr Erdogan for years, once referring to him as "the Hitler of our century". They got a lot of spies there. "I can get killed pretty easy". "It would be a very ugly situation".
The central bank said it believes the latest move could "guide" banks to lend more to small and tiny businesses. The government has also ramped up spending on infrastructure to rekindle sluggish demand and investment.
It seems that an earlier rumor of the DLC characters coming from Square Enix Games has some truth to it after all. Edrick is a recurring legendary character who usually uses a sword but is also skilled in wielding other weapons.
Ross on CNBC: U.S., China could settle immediate trade issues
Adding to the worries, China's stock market became the world's worst performer a year ago , ending with a loss of 28 percent. In exchange, Trump agreed to put on hold a planned increase in tariffs on $200 billion (€175 billion) in imports from China.
Trump to travel to USA southern border on Thursday
Democrats want to ensure that they are shielded from deportation but have refused to link the issue with a deal on wall funding. Partial shutdowns occur when Congress can not agree a budget by a certain deadline or the president refuses to sign it.
Sabalenka wins Shenzhen Open, beats Riske in final
But Sabalenka pulled off three-straight breaks of serve and took a 3-2 lead and, a game later, Sharapova retired. Top seed Aryna Sabalenka cruised past China's Wang Yafan on Saturday to reach the final of the Shenzhen Open .