U.S. December Payroll Hints At Promising Economic Future

Posted: Jan 8 2016, 1:03pm CST | by , in News | Latest Political News


U.S. December Payroll Hints at Promising Economic Future
Photo Credit: Getty Images

December finished high in the job count, pushing what was already a great year for the United States economy to a great year, despite many other countries have a troublesome year.

Nonfarm payrolls increased by 292,000 last month, the Labor Department announced on Friday. The unemployment rate held quite steady at a 7.5-year low of 5%, even as college graduations meant that more people were entering the labor force.

Better yet, the payrolls for both October and November were revised to show that there were more than 50,000 more jobs created than previously reported.

For a bit of bad news, there was a 1% drop in average hourly wages.

There were some fears at the start of this year (and December) that the economy's healthy was on the wayside, especially because there was some weakness expected in the manufacturing and export sectors due to global demand. However, the approaches to fight against those seemed to be successful.

"It is one more sign the domestic economy continues to chug along," said Kate Warne, investment strategist at Edward Jones in St. Louis. "It is not a game changer in terms of faster economic growth, but it offsets some of the other indicators that recently have suggested the economy might be slowing down."

The dollar is moving higher and the prices for the U.S. government debt fell, according to the Wall Street Journal's Money Beat.

"This certainly supports the Fed’s intent to hike rates in March," said Krishna Memani, chief investment officer at Oppenheimer Funds in New York. "There’s nothing in the data so far to take them away from the four hikes (expected) this year.”

The employment gains that were made in December focused mostly on the services sector. In some areas, such as mining, employment fell.

Manufacturing added about 8,000 jobs last month and construction jobs were given a boost thanks to warm weather.

Retail payrolls rose only 4,300 as the mild temperatures hurt sales of winter apparel. Temporary help increased 34,400 last month and government payrolls rose 17,000.

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The Author

<a href="/latest_stories/all/all/46" rel="author">Noel Diem</a>
Noel passion is to write about geek culture.




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