Interest Rate Roundup

Friday, December 04, 2009

November jobs report a big UPSIDE surprise

It's been a long time since we've had encouraging news on the jobs front. But boy did we get it this morning. The details:

* Employment fell by a paltry 11,000 in the month of November. That was much better than the expectation for a drop of 125,000. October's -190k reading was also revised up to only -111k, while September's -219k reading was bumped up to -139k.

* The unemployment rate actually FELL to 10% from 10.2%. That was better than the 10.2% forecast. The household employment survey, which is different from the business survey that gives you the headline jobs figure, actually showed a net GAIN of 227,000 jobs. We haven't seen a positive reading since April 2009 (+120,000) and a reading this strong since April 2008 (+234,000).

* Average hourly earnings were the weak link in the chain. They gained just 0.1%. That was down from 0.3% a month earlier and below forecasts for a reading of 0.2%. However, average weekly hours picked up to 33.2 from 33. That's the best reading we've seen since February.

* By industry, we saw a decent pop in service jobs (+58,000). The temporary help category has now shown three straight gains, including a sizable boost of 86,000 jobs. Education and health care has produced "Steady Eddie" gains (+40,000 in November). The weakness was in categories like construction (-27,000), manufacturing (-41,000), and retail trade (-15,000).

1 Comments:

  • According to the BLS, 86,000 New jobs were created for Profressional services. Mostly from new minted self-employed people started businesses. Isn't it just grand that we can all start new businesses sell junk on eBay and Craig's List! Amazing.

    By Anonymous Anonymous, at December 7, 2009 at 1:44 PM  

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