Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow Us: 

Search by Ticker, Keyword or CUSIP       
 
 

Blog Home
   Brian Wesbury
Chief Economist
 
Click for Bio
Follow Brian on Twitter Follow Brian on LinkedIn View Videos on YouTube
   Bob Stein
Deputy Chief Economist
Click for Bio
Follow Bob on Twitter Follow Bob on LinkedIn View Videos on YouTube
 
  Non-farm payrolls increased 103,000 in December

 
Implications:  The labor market continues to improve. Today's report was not as strong as some had hoped, but also not as weak as some had feared. Including upward revisions to prior months, the gain in private payrolls was in line with the consensus at 175,000. This number would have been even higher if not for unusually bad weather in December, which led to 43,000 more jobs lost than in a typical December. The unemployment rate fell from 9.8% to 9.4%, the biggest monthly decline since 1996. This was due to a very solid increase of 297,000 in civilian employment as well as a decline of 260,000 in the labor force.  The actual truth in the unemployment rate is probably somewhere in-between last month's 9.8% and this month's 9.4%. Private payrolls were up 112,000 per month in 2010.  During the same time-frame, civilian employment, a different measure of jobs that is better at picking up the self-employed and small start-up businesses, was up 124,000 per month.  Total hours worked were up 2.8% in 2010 while total cash earnings were up 4.6%. These figures show both stronger demand for labor and that worker earnings can support continued gains in consumer spending. Given better economic news on both manufacturing and service production, the underlying trend in job growth should accelerate in the months ahead. In other recent news on the labor market, new claims for unemployment insurance increased 18,000 last week to 409,000.  However, the four-week moving average declined to 411,000, the lowest since July 2008.  Continuing claims for regular state benefits fell 47,000 to 4.10 million.

Click here to view the entire commentary.
Posted on Friday, January 7, 2011 @ 11:39 AM • Post Link Share: 
Print this post Printer Friendly

These posts were prepared by First Trust Advisors L. P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial advisors are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA.
First Trust Advisors L.P.
Home |  Important Legal Information |  Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2019 All rights reserved.