us nov 2017 employment - preview
table top
NON-FARM PAYROLLS GROWTH TO SLOW AFTER HURRICANE-INDUCED SPIKE

Wednesday, 6 December 2017

 

The November US jobs report will likely reveal a deceleration in nonfarm payrolls growth as the economy stabilizes after the previous hurricane-induced spike.

 

US jobs growth is expected to have maintained its momentum in November, although at slower pace than in the previous month. Analysts predict US employers hired 198,000 new workers last month after filling 261,000 openings in October. The consensus range is set between 153,000 and 250,000.

 

The Bureau of Labor Statistics (BLS) will release the official US employment report on 8 December at 1330 GMT. LiveSquawk News will report on the data, live from the US Labor Department.

 

Wednesday’s ADP employment report predicted that private-sector employment increased by 190,000 in November.

 

“The labor market continues to grow at a solid pace,” said ADP’s Ahu Yildirmaz, adding that “as the labor market continues to tighten and wages increase it will become increasingly difficult for employers to attract and retain skilled talent.”

 

According to Moody’s Analytics chief economist Mark Zandi: “There is a mounting threat that the job market will overheat next year.”

 

Sector-by-sector projections for Friday’s jobs report point to a 15,000 increase in manufacturing payrolls following October's 24,000 rise. The consensus forecast  for the unemployment rate is unchanged at 4.1 percent, the lowest level since December 2000.

 

Average hourly earnings are expected to grow to 0.3 percent month on month after staying virtually unchanged in October, while year-on-year hourly earnings are seen to inch up to 2.7 percent compared to October's 2.4 percent.

 

Last week’s economic data showed the US economy advanced faster than originally reported in Q3, growing at a 3.3 percent annualized rate, the fastest pace in three years. In the second quarter, US GDP rate reached 3.1 percent. The initial “advance” report had the Q3 economic growth at 3 percent pace.

 

The U.S. economy has been recovering from the destruction and devastation of one of the most severe hurricane seasons ever recorded. After an initial deceleration followed by a substantial boost in some third-quarter indicators as the states began to rebuild their housing and infrastructure, the economy has been now bouncing back to its steady rise.

 

Zuzana Jerabek - LiveSquawk News

table bottom