5 key things to watch out for in today’s NFP report – WSJ
The Wall Street Journal (WSJ) in its US payrolls preview, highlights five important things to look out for in today’s NFP release.
5 – Key things to watch out:
“1. Calm after the storms
WSJ highlights that the hurricane effect that caused a strong rebound in October should be "washed out". And that will mean November's report should give a clearer picture of the state of the labour market. If it comes in within expectations, it would signal job creation, and the broader economy, are on a firm footing.
2. Record low rates
The unemployment rate touched its lowest mark in 17 years in October. And the article mentions that the jobless rate is sending a signal that the labor market is tight, potentially putting pressure on the Fed to lift rates more aggressively in 2018.
3. Weak wages?
Again, WSJ highlights that the hurricane likely affected wage-growth figures in October. But there should be a bounce in wage-growth figures in November post-hurricane despite the October figure being the weakest pace of growth since February 2016.
4. Parsing the participation rate
WSJ says to keep an eye on the November participation rate for a continuation of sideways movement. The article mentions that it's a sign of labor market health as Americans are entering or remaining in the labor market even as aging baby boomers retire.
5. Will we see a tax effect in November?
The article mentions that strong jobs growth could be a signal of employers' confidence in the economy - during a month when Congress hashed out its new tax policy.”