U.S. Private-Sector Hiring Rose Sharply In December
James Picerno | Jan 06, 2019 01:27AM ET
Companies dramatically increased hiring in December, according to this morning’s monthly update from the US Bureau of Labor Statistics. The substantially larger-than-expected increase in private-sector employment suggests that the economic outlook is considerably brighter than implied by the stock market, which has fallen sharply in recent months.
Private payrolls rose 301,000 last month, or nearly twice as much as the consensus forecast via Econoday.com. More importantly, the year-over-year trend picked up to a 2.1% pace – the first reading above 2% since September 2016.
Future revisions to the employment data may trim the results and so a degree of caution is required for interpreting today’s results. As a general rule, it’s wise not to read too much into any one number. Nonetheless, it appears that the employment trend remains solidly positive, reaffirming The Capital Spectator’s analysis that recession risk remains low for the US, at least through the end of 2018.
“The jump in payrolls in December would seem to make a mockery of market fears of an impending recession,” says Paul Ashworth, chief economist at Capital Economics “This employment report suggests the US economy still has considerable forward momentum.”
Yesterday’s ADP Employment Report for December offers a similar view. The firm’s estimate of private payrolls reflects a strong 271,000 advance, which translates to a robust 2.0% year-over-year gain.
A number of challenges still lurk for the year ahead, but it’s clear that the US labor market ended 2018 on a solidly upbeat note.
“The US economy will eventually fall into recession, maybe as soon as next year, but the December employment report indicates that this isn’t going to happen anytime soon,” comments David Berson, Nationwide’s chief economist.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.