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US Nonfarm payroll: Jobs growth likely increased for the second straight month in November

FXStreet (Mumbai) - The U.S. Labor Department is due to announce the nonfarm payroll data today. Job growth is believed to have remained solid in November suggesting that economy has been resilient. An increase in total number of jobs added will almost confirm a rate hike in December. Economists surveyed by Reuters estimates a 200000 increase in nonfarm payrolls. It will add to the 271,000 jobs that were created in October.

The unemployment rate will likely hold steady at a 7-1/2-year low of 5 per cent. The unemployment rate that has come down seven-tenths of a percentage point in 2015 is considered to be consistent with full employment. Fed chair Yellen stated that economy needs to create just under 100,000 jobs a month to keep up with growth in the working age population.

Employment gains were likely broad-based. Manufacturing and mining sectors however probably lost more jobs. The labor force participation rate is also believed to have risen in November. Wage growth likely slowed slightly in November. Average hourly earnings have likely risen 0.2 per cent after having increased 0.4 per cent in October.
A strong job growth for the second month will help to stub fears that have risen from reports that highlighted tepid consumer spending in October. Manufacturing contracted in November for the first time in three years; a slowdown in services industry growth was also reported for the month.

Ryan Sweet, senior economist at Moody's Analytics in Westchester, Pennsylvania believes an increase in jobs growth for November will “give the Fed confidence to begin raising rates in December. It will have to be a disaster for the Fed to delay until 2016."

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