The level of job creation rose in the US and unemployment fell. The economy appears robust, so the market is keeping an eye on the Fed’s next rate decision.
The US Department of Labor reported that, in December, 256,000 jobs were created, above expectations, compared to a figure of 212,000 in the previous month.. And the US unemployment rate fell to 4.1% from a level of 4.2%, compared to a forecast of 4.2%. This once again puts the eye on the rate policy of the Federal Reserve (FED).
This is one of the most anticipated data by the market and it surprised the market given that it was higher than the previous month and much higher than estimated. A survey of 65 economists conducted by Reuters had forecast job creation to fall to 160,000.
And as for the unemployment rate, it fell to 4.1%, while the forecast was for it to remain at 4.2%. There was also a surprise in private non-farm payrolls. In December, 223,000 were created, a higher estimated figure.
Likewise, average hourly earnings, year-on-year, rose by 3.9% (one tenth less than the previous month) and the monthly figure rose by 0.3%, also lower than the previous month.
The market expectation is that the Fed will take note of this data for its next interest rate decision. It is expected that it will be able to slow down its path of lowering rates or even revise its plan to go down that path in the face of an economy that appears robust in all its data,
Source: Ambito
