by Marc Chandler
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United StatesThe US dollar has slipped lower in response to the jobs data, but quickly recovered. The details are mixed, but is unlikely to change views on the outlook for Fed policy. The headline job creation was in line with expectations at 178k. Job growth of the back two months were shaved by 2k, concentrated in October. |
U.S. Nonfarm Payrolls, November 2016(see more posts on U.S. Nonfarm Payrolls, ) Source: Investing.com - Click to enlarge |
Unemployment RateThe unemployment rate dropped to 4.6%, the lowest since 2007. The underemployment rate fell to 9.3% from 9.5%, the lowest since 2008. |
U.S. Unemployment Rate, November 2016(see more posts on U.S. Unemployment Rate, ) . Source: Investing.com - Click to enlarge |
Participation RateThe declines were larger than one would have expected if driven by the decline in the participation rate, which slipped to 62.7% from 62.8%. |
U.S. Participation Rate, November 2016(see more posts on U.S. Participation Rate, ) Source: Investing.com - Click to enlarge |
Average Weekly EaringsThe notable disappointment lies with average hourly earnings. Rather than rise 0.2% on the month, they fell by 0.1%, which brought the year-over-year rate back to 2.5% from 2.8%. The long-end of the curve likes the lower wage pressure, with the 10-year yield slipping 3-4 bp. Today’s report is unlikely to force a re-think by investors on either the trajectory of Fed policy or the outlook for the US economy. There may still be some scope for upward revisions to Q3 US GDP, and Q4 is tracking above the rolling four-quarter average. |
U.S. Average Weekly Earnings YoY(see more posts on U.S. Average Earnings, ) Source: macro.economicblogs.org - Click to enlarge |
Canada Employment ChangeCanada reported its jobs data as well. The headline job growth of 10.7k jobs overstates the case. Canada lost 8.7k full-time positions after losing 23.1k in October. Part-time positions grew by 19.4k. |
Canada Employment Change, November 2016(see more posts on Canada Participation Rate, ) Source: Investing.com - Click to enlarge |
Canada Unemployment RateUnlike what we saw in the US, the full decline in Canada’s unemployment rate to 6.8% from 7.0% can be fully explained by the drop in the participation rate (65.6% vs. 65.8%). |
Canada Unemployment Rate, November 2016(see more posts on Canada Unemployment Rate, ) Source: Investing.com - Click to enlarge |
Comments by George Dorgan My articles My siteAbout meMy videosMy books Follow on:LinkedINTwitterSeeking Alpha CFA SocietyEconomicBlogs Canada Participation RateThe Canadian participation is nearly three percent higher than the American one. On the other side, Canadian unemployment is two percent higher. |
Canada Participation Rate, November 2016(see more posts on Canada Participation Rate, ) Source: Investing.com - Click to enlarge |
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