The Nomura Team shares the positives and negative points of Friday’s US jobs report.
Key Quotes
Positives
“Nonfarm payrolls rose by 257k (Consensus: 228k, Nomura: 230k). The pace of job creation in December and November was revised up by 70k and 77k, respectively.”
“Construction employment continued a solid gain of 39k after 44k increase in the previous month. Manufacturing sector employment continued a double-digit increase of 22k following 26k advance in the previous month despite weak factory surveys. Private services sector added 209k jobs, marking the third consecutive month of above 200k increase.”
“Average hourly earnings rebounded strongly increasing 0.5% m/m, putting its y/y change rate at 2.2%, up from 1.9% in the previous months.”
“Labor force participation rate jumped to 62.9% from 62.7% even after adjusting for the impact from annual revisions.”
“The unemployment rate inched up to 5.7% from 5.6% (for the positive reason though as labor force increased by 1051k).”
“Discouraged workers declined by 18.5% y/y.”
“Job leavers, a gauge of job turnovers, increase by 53k to 851k.”
Negatives
“Average weekly hours remained unchanged at 34.6 hours.”
“The underemployment rate (U6) rose 0.1pp to 11.3%.”
“Part-time workers for economic reasons increased by 20k.”
Key Quotes
Positives
“Nonfarm payrolls rose by 257k (Consensus: 228k, Nomura: 230k). The pace of job creation in December and November was revised up by 70k and 77k, respectively.”
“Construction employment continued a solid gain of 39k after 44k increase in the previous month. Manufacturing sector employment continued a double-digit increase of 22k following 26k advance in the previous month despite weak factory surveys. Private services sector added 209k jobs, marking the third consecutive month of above 200k increase.”
“Average hourly earnings rebounded strongly increasing 0.5% m/m, putting its y/y change rate at 2.2%, up from 1.9% in the previous months.”
“Labor force participation rate jumped to 62.9% from 62.7% even after adjusting for the impact from annual revisions.”
“The unemployment rate inched up to 5.7% from 5.6% (for the positive reason though as labor force increased by 1051k).”
“Discouraged workers declined by 18.5% y/y.”
“Job leavers, a gauge of job turnovers, increase by 53k to 851k.”
Negatives
“Average weekly hours remained unchanged at 34.6 hours.”
“The underemployment rate (U6) rose 0.1pp to 11.3%.”
“Part-time workers for economic reasons increased by 20k.”
