Friday, December 02, 2005

US Economy Creates Another 215,00 Jobs

- The Change in Non-farm Payrolls for November was 215K versus estimates of 210K and 44K in October.
- The Change in Manufacturing Payrolls for November was 11K versus estimates of 5K and 15K in October.
- The Unemployment Rate for November was 5.0% versus estimates of 5.0% and 5.0% in October.
- Average Hourly Earnings for November rose .2% versus estimates of a .2% increase and a .6% gain in Ocober.
BOTTOM LINE: The US economy added 215,000 jobs in November, bouncing back from two months of weak job growth triggered by Hurricanes Katrina and Rita, Bloomberg reported. The largest percentage of industries are now hiring since July 2004. With the US economy in the middle of the best streak of 3%+ growth quarters since 1986 and double-digit corporate earnings gains in the middle of the best streak since 1936, I expect the US labor market to continue to improve at a modest rate over the intermediate-term. The deceleration in Average Hourly Earnings is a positive as unit labor cost increases, the largest component of inflation, remain subdued.

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