Better Job Report Backs Rate Hike In December
US non-farm payrolls rose in November
With job additions in construction, professional and technical services, as well as healthcare, total nonfarm payroll employment has jumped by 211 thousand in November. This is above the consensus estimate of 190 thousand. Total nonfarm payrolls private surged by 197 thousand in November 2015. Moreover, the unemployment rate was unchanged at 5.0% in November.
Private service providers
In terms of the employment situation, 27 thousand and 40 thousand jobs were added in professional and business services as well as education and healthcare, respectively. Job gains were also seen in retail trade, with the addition of 30.7 thousand, not to mention 39 thousand in leisure and hospitality in November. In addition, financial activity saw a jump of 14 thousand in employment in November.
Goods producers
In November, goods producers added 34 thousand jobs with an increase in payroll of construction activity by 46 thousand.
The fall in demand for industrial commodities led to a decrease of workforce requirements in mining jobs. Mining jobs continued the downturn, falling by 11 thousand in November 2015. Over the past year, the SPDR S&P Metals and Mining ETF (XME) and Direxion Daily Gold Miners Bull 3X ETF (NUGT) fell by 48.7% and 74.9%, respectively, as of December 4. The mining stocks Alcoa (AA), Nucor (NUE), Steel Dynamics (STLD), and Reliance Steel & Aluminum (RS) fell by 42.7%, 23.9%, 23.0%, and 7.0%, respectively, over the same period.
In the United States, initial jobless claims continued to stay below 300 thousand. This was supported by strong employment figures in November. An improved labor market condition seems to reaffirm Fed Chair Janet Yellen’s hawkish stance on a rate hike during the FOMC (Federal Open Market Committee) meeting this December.
While employment is gaining strength in the United States, Let’s see how foreign trade is shaping up in the next article.
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