December’s headline employment number came in slightly below economists’ estimates for the month, as employers added 145,000 workers, versus expectations of an increase of 160,000, according to the median forecast in a Bloomberg News survey. On a rolling three-month basis, employers are adding an average of 184,000 workers per month. Net revisions to the previous two months subtracted 14,000 jobs. Manufacturing lost 12,000 jobs during the month. Retail trade and Leisure and Hospitality both added more than 40,000 jobs for the month. Private hiring, which excludes government agencies, came in slightly below estimates as well, adding 139,000 jobs versus expectations of an increase of 153,000. The unemployment rate remained at 3.5%, the lowest level since 1969. Additionally, the labor force participation rate, the proportion of the population that is in the labor force, was also unchanged at 63.2%. One of the most watched numbers in the data, Average Hourly Earnings, came in below economists’ estimates at 0.1% for the month, versus expectations of a 0.3% increase moving year-over-year wage growth down to 2.9%. Average hourly earnings increased $0.03 over last month’s number to $28.32 per hour. Average weekly hours ticked down to 34.3 hours. November was revised lower to the same level. The so-called U6 underemployment rate, which includes part-time workers who would prefer a full-time position and people who want work but have given up looking, moved down two ticks to 6.7%, the all-time record low. Market participants watch this number to monitor slack in the labor market. 10-year U.S. Treasuries traded as high as 2.78% in early 2019, and started today’s trading at 1.85%.
Yields moved up and down following the release but are now little changed:
Below is a link to the full statistical summary provided by the Bureau of Labor Statistics:
http://content.zieglercap.com/e/674333/Bureau-of-Labor-Statistics/njnq/25863539?h=aNn7_aBUwIYaIYVlYDRjd2uPvAed7WRD53e5QmD1x00
The information contained herein has been prepared from sources believed to be reliable but is not guaranteed and is not a complete summary or statement of all available data nor is it considered an offer to buy or sell any securities referred to herein. By clicking on this link, you understand and acknowledge that you are leaving the Ziegler Capital Management’s webpage.