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Non-Farm Payrolls Climb in Line with Expectations as The Employment Rate Drops to 4.6%

By:
David Becker
Published: Dec 2, 2016, 13:49 UTC

Non-farm payrolls grew at 179K for November, in line with expectations, as the unemployment rate dropped to 4.6%.  October was revised lower by 19K to

Employment Data

Non-farm payrolls grew at 179K for November, in line with expectations, as the unemployment rate dropped to 4.6%.  October was revised lower by 19K to 142K, while September was increased to 208K for a net decline over the past two months by -2K. Household employment was up by 160K after falling by 43K in October. The U6, rate which is a broader view of those employed dropped to 9.3%, compared to 9.7% in September.

Earnings dipped 0.1% last month following a 0.4% surge previously. Average hours were steady at 34.4. Private payrolls increased 156k, with goods producing jobs up 17, and construction up 19k, while manufacturing slid 4k. Private service sector employment increased 139k jobs, helped by a 63k gain in business services. Government jobs rose 22k.

Stocks and bond futures were nearly unchanged after the number, and it appears that a rate hike is baked in the cake.  Yields remain elevated with the 10-year hovering near 2.41%. The dollar remains strong and should continue to benefit from higher yields.  The Canadian dollar initially dropped, following a stronger than expected Canadian employment report.

Canadian Employment Grew More than Expected

Canada employment grew 10.7k in November after the 43.9k surge in October. The increase was contrary to expectations of a decline of 10.0k. Full time employment fell 8.7k following a 23.1k drop. Part time employment grew 19.4k after a 67.1k surge. The unemployment rate pulled-back to 6.8% in November compared to expectations of 7.0% versus the 7.0% in October. The participation rate declined to 65.6 in November from 65.8 in November.

About the Author

David Becker focuses his attention on various consulting and portfolio management activities at Fortuity LLC, where he currently provides oversight for a multimillion-dollar portfolio consisting of commodities, debt, equities, real estate, and more.

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