US: Weak labour market data – Nordea Markets
|Anders Svendsen, research analyst at Nordea Markets, points out that the US labour market showed weakness for the month of November as the nonfarm payrolls and wage growth were weaker than expected, while the broad unemployment was higher than expected.
Key Quotes
“Job gains: Weaker than expected and mild negative revisions from the recent two months. The 12-month trend remains around 200k, but employment growth will most likely lose pace in 2019. We expect a trend around 175k in the first half, falling to around 125k in the second half of the year.”
“Wage growth: Average hourly earnings were a bit slower than expected but is running above 3% y/y for the second consecutive month. Wage growth is likely to pick up further going forward with the unemployment rate at these low levels.”
“Unemployment: Unchanged at very low levels, but with broad unemployment (U6) up – temporarily – 0.2% points in November.”
“Looking ahead: The labour market remains tight and will only become tighter until the next downturn. However, the employment trend will weaken in 2019 and it is difficult to see the unemployment rate much lower from current levels.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.