US NFP: We expect a solid December job report - Wells Fargo

On Friday, the US Labor Department will release the last official employment report of the Obama administration. Analysts from Wells Fargo, expect an increase of 185K in payrolls, above the consensus forecast of 175K. 

Key Quotes: 

“The job market was one of the brightest spots of the U.S. economy over the past year, with solid monthly job gains pushing the economy closer to full employment. Employers added an average 161,500 jobs per month through November 2016, and December’s gain likely will be in line with the 176,000-job gain averaged over the past three months. Increasingly tight labor supply has tempered hiring this year relative to 2015, when the economy averaged 228,600 jobs per month.”

“Over the past year, the unemployment rate fell from 5 percent to its post-recession low of 4.6 percent in November, standing just 0.2 percentage points above its previous low in 2007. Wage pressures also ramped up in 2016, which bodes well for income and spending growth going forward into 2017. We expect a solid December job report, closing out 2016 on a positive note.”