All three major U.S. indexes were up more than a percent on
Friday after stronger-than-expected U.S. jobs data built the case for the
Federal Reserve to raise interest rates this month for the first time in nearly
a decade. All but one of the 10 major S&P 500 sectors were higher. The
energy index fell after sources told Reuters that OPEC would maintain its
production in an oversupplied market. Nonfarm payrolls increased 211,000 in
November, the Labor Department reported, while September and October data was
revised to show 35,000 more jobs than previously reported.
The unemployment rate held at a 7-1/2-year low of 5 percent,
even as people returned to the labor force in a sign of confidence in the jobs
market.
This news mirrors the analysis Ben Ayers, George Mokrzan and Mark Shweitzer delivered at the economic outlook conference, several weeks ago. From a regional perspective, the perennial losers in terms of overall economic growth had included states in the midwest including Michigan, Ohio, Indiana, actually have above average growth as well as decreased unemployment. Although the current climate can be seen from a glass-half-full perspective, it is important to note like several audience members at the conference explained, that economic conditions in the midwest haven't return to what they were in the beginning part of the decade. Additionally, job growth in the midwest had been driven by manufacturing job opportunities, many of which have been eliminated as the midwest moves out of the manufacturing sector.
http://www.reuters.com/article/us-markets-stocks idUSKBN0TN19520151204#peRxyqsoVxlEMyrv.97
2 comments:
Job growth indicators are extremely difficult to determine if citizens are actually finding the "correct" job for their individual expertise. Although, more manufacturing job opportunities have arisen, this does not mean the overall job market is better. In recent news, many oil companies are cutting back on production, and ultimately jobs. The manufacturing sector is continually becoming more weak in the United States as production is outsourced to countries with cheaper labor.
Underemployment could really be an issue lurking behind the numbers. If we have a glut of underemployment, look for falling productivity and a few years of mediocre growth rates in the coming future.
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