Despite the payroll gain, the unemployment rate held steady at 5.0 percent. The labor force participation rate, however, did improve, up 1 tenth to 62.6 percent. The strength in hiring did not result in a wage rise as hourly earnings came in unchanged though the year-on-year rate, boosted by an easy year-ago comparison, rose 2 tenths to 2.5 percent, a rate that, however, is lower than many expected.
This report is strong but the lack of wage punch underscores the two-track economy and the Fed's dilemma -- strong job growth but weak inflation.
Recent History Of This Indicator:
Nonfarm payrolls are expected to rise 200,000 in December in what would extend a run of very solid employment reports. Strength near the high end forecast of 249,000, or a dip to 4.9 percent for the unemployment rate, would likely seal early expectations for another rate hike at the March FOMC.
Nonfarm payrolls are expected to rise 200,000 in December in what would extend a run of very solid employment reports. Strength near the high end forecast of 249,000, or a dip to 4.9 percent for the unemployment rate, would likely seal early expectations for another rate hike at the March FOMC.
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