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CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Saturday, 9 January 2016

US payrolls eclipse expectations (+2.65 million jobs in 2015)

Sizeable beat

A big upside surprise for the world's most powerful economy, as the Bureau of Labor Statistics reported that total US nonfarm payroll employment increased by +292,000 in December, easily eclipsing market expectations of around +200,000.  

Better still, the results were revised up for October (+298,000 to +307,000) and November (from +211,000 to +252,000), for total positive revisions of +50,000.

This release rounds off another strong year for the US labor force, with employment gains now recorded over 70 consecutive months.

The economy has added 13.6 million jobs from the post-recession low, to sit 4.9 million higher than at the preceding peak.

The strong monthly result plus revisions saw the average monthly increase for 2015 improve to more than 220,000 for a total of 2.65 million jobs over the calendar year, following on from the impressive 3.12 million jobs created in 2014.

The participation rate ticked up a notch to 62.6 per cent, while the unemployment rate has been steady since October at 5 per cent. 

Construction employment grew strongly for the third month in a row, which likely augurs well for the US economy.

Average hourly earnings were only flat in the monthof December, but moved up to +2.5 per cent over the year, from +2.3 per cent in November. 

A happy result, then! The Aussie dollar moves sharply to 69.5 US cents on this news.

A big week of news ahead too, so stay tuned!