Nonfarm Payrolls Report Shows Job Growth In U.S. Improving; Unemployment Falls to 8.5%
January 6, 2012
The Labor Department reported that Nonfarm Payrolls, which is one of the most closely followed gauges regarding the state of the economy at the present time, gained 200,000 in the month of December.
The increase in the number of new jobs was well above the consensus estimates for an increase of 153,000 and was above November’s upwardly revised total of 120K.
The report stated that November and October totals were revised lower by a total of 8K jobs.
The private sector (aka the household survey) showed gains of 212K jobs, which was below this week’s ADP report that showed 325K new private sector jobs.
The nation’s Unemployment Rate was once again a big surprise as the rate fell to 8.5% - expectations had been for an increase in the reading to 8.7%. The current rate of unemployment is the lowest level seen since at least March 2009. CNBC reports that the unemployment rate has fallen by 0.6% since August alone.
Next up, average hourly earnings rose by +0.2% on a month-over-month basis while the average number of weekly hours worked increased to 34.4 (from 34.3).
The report shows that growth in manufacturing jobs helped offset loss in government positions.
The labor-force participation rate, which is looked at as an important measure of optimism in the job market, was unchanged at 64%. The average length of time for the unemployed remains near a record high at just under 41 weeks, though the number of those unemployed for 27 weeks or longer fell by 92,000.
However, a good jobs report has not been a good omen for the stock market of late. CNBC reports that if the market closes lower Friday it will mark the eighth consecutive time the averages fell on the day of the monthly employment report.
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