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Dec 4, 2015
NFP: Solid gains that supports continued economic growth - Wells Fargo
FXStreet (Córdoba) - According to economists from Wells Fargo today’s numbers support the Fed’s move to raise rates for the first time since 2006 as it shows solid gains and diminishing slack.
Key Quotes:
“Nonfarm employment rose 211,000 in November—a solid gain that supports continued economic growth. We have emphasized the divergence between the manufacturing and non-manufacturing ISM surveys and we can see that divergence in today’s number. Manufacturing employment edged lower, while mining employment fell for the 11th straight month.”
“Our medium-term view is that job gains are set to continue at a more moderate pace than the past two years as the expansion matures, although they should still remain strong enough to lower the unemployment rate on trend and put pressure on labor costs as labor force growth remains weak.”
“Reduced labor market slack is beginning to lead to a modest pickup in wages, but the declining pool of available workers signals a rising problem of a shortage of workers relative to demand. In addition, labor force participation remains depressed. Beyond the demographic headwinds on the participation rate, there has been an ongoing decline in participation among prime-age workers that preceded the Great Recession, suggesting limited scope for a cyclical rebound.”
Key Quotes:
“Nonfarm employment rose 211,000 in November—a solid gain that supports continued economic growth. We have emphasized the divergence between the manufacturing and non-manufacturing ISM surveys and we can see that divergence in today’s number. Manufacturing employment edged lower, while mining employment fell for the 11th straight month.”
“Our medium-term view is that job gains are set to continue at a more moderate pace than the past two years as the expansion matures, although they should still remain strong enough to lower the unemployment rate on trend and put pressure on labor costs as labor force growth remains weak.”
“Reduced labor market slack is beginning to lead to a modest pickup in wages, but the declining pool of available workers signals a rising problem of a shortage of workers relative to demand. In addition, labor force participation remains depressed. Beyond the demographic headwinds on the participation rate, there has been an ongoing decline in participation among prime-age workers that preceded the Great Recession, suggesting limited scope for a cyclical rebound.”