By , October 3, 2014
Once again the growing strength in the U.S. economy was reflected in the jobs report this morning. Actual jobs for the month of September increased 248,000 vs. a consensus estimate of 215,000. Further, the unemployment rate ticked down to 5.9% also surprising analysts.
The labor force participation rate continues to decline and the “underemployed” rate ticked down as well. We feel this lends more credence to the idea that the labor market is tightening due to retirement of Baby Boom workers rather than limited job opportunities for available workers.
We are still not seeing wage pressure in the data. Even though there are continued rumors of a “skill gap” in certain industries, (if it exists) it does not seem to be significant enough as to be manifesting itself on a national level and thereby requiring employers to pay more to get the skilled labor they need.
Here’s a quick overview of the Labor Market – <Click Chart to Enlarge>
Sources: Thomson Reuters Eikon
Other posts from
April 24, 2017
April 24, 2017
The start of the year saw a continuation of positive returns in the first quarter as global markets speculated on a spark in world growth initiated by the election of Donald Trump in the United States. Trump’s unique background and style suggested that the new president would be able repair some of the historically wide rift that has separated Republicans and Democrats.
January 12, 2017
During the first quarter, U.S. equities continued the strong advance experienced during the fourth quarter of 2016.
For the three months ending March 31st, the Dow Jones Industrial Average posted a 4.6% gain while the S&P 500 Index rose 5.5%. The stock market has been resilient due to robust corporate earnings as well as employment growth and positive economic data which have undergirded this upward advance.
Equity markets finished 2016 on a high note as markets rallied on a shocking surprise in the U.S. election. The election of Donald Trump for President of the United States was the most recent example of “low probability” events actually occurring and disrupting markets. This happened a few times in 2016, but none so dramatic as the Trump victory.