Last Update: 04-Jan-13 09:41 ET
December Jobs Report Shows Stable Growth
The December Employment Situation report fit the same mold we have seen for a while of being good, but not great. Nonfarm payrolls increased by 155,000 (Briefing.com consensus 150,000), which was basically in-line with the average monthly gain of 153,000 for 2012. Revisions to nonfarm payroll data for October and November were minimal. Private sector payrolls jumped by 168,000 in December, which was higher than the Briefing.com consensus estimate of 145,000. The construction industry accounted for 30,000 new jobs, with rebuilding efforts from Hurricane Sandy playing a part. The unemployment rate was unchanged at 7.8% after taking into account updated seasonal adjustment factors for the household survey. The average workweek ticked up 0.1 to 34.5 hours (Briefing.com consensus 34.5) while hourly earnings rose 0.3% (Briefing.com consensus 0.2%). Long-term unemployed workers (27 weeks or more) accounted for 39.1% of the unemployed versus 40.0% in November. The U6 unemployment rate, which also accounts for discouraged workers, held steady at 14.4%. The futures market ticked a little higher and the Treasury market pared some of its losses after the employment report, which carried a mixed message of stable job growth that is good but not good enough to make a meaningful dent in the unemployment rate. In that vein, it was also good, but not good enough in our estimation to convince the Fed to withdraw its accommodation anytime soon.
The December Employment Situation report fit the same mold we have seen for a while of being good, but not great. Nonfarm payrolls increased by