The US economy churned out a solid 228,000 new jobs in November, which was better than expected. The print is particularly encouraging given that the distortions related to the storms this hurricane season have largely dissipated. Gains were widespread across major industries, with only information and federal government employment seeing declines. Employment growth on the goods side of the economy accelerated (+62k) on gains in construction (+24k) and manufacturing (+31k). The services sector posted a solid 159k new positions led by education & health (+54k) and business services (+46k). October job gains, meanwhile, were trimmed to 244,000 from 261,000. The increase in jobs in September was raised to 38,000 from 18,000.
Unemployment held steady at 4.1% last month but is down from 4.6% a year ago. The labor force participation rate was also unchanged at 62.7%, which we view positively considering the aging of the population weighing on overall participation.
Wage growth remained muted in November. Average hourly earnings rose 0.2% mom, which was short of expectations and followed downward revisions to September and October. The year-over year rate rose to 2.5%, but has weakened since late last year. One offset to the tepid wage growth this month, however, was that workers were offered more hours at work. The average length of the work week edged up to 34.5 hours, which, along with the net jobs added, suggest income derived from the labor market has strengthened at 4.7% annualized rate the past three months.
Source: BIMB Securities Research - 11 Dec 2017
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Created by kltrader | Aug 12, 2024