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November Payrolls 228,000, Wages Stagnant

Posted by Joseph Trevisani on Dec 8, 2017 9:50:30 AM

The U.S. economy created more jobs than anticipated last month but wages continuted to lag even though the unemployment rate stayed near a two decade low.

Employers hired 228,000 new workers in November following the previous month's revised 244,000 total and the unemployment rate remained at 4.1 percent, according to the Employment Situation Report issued by the Labor Department on Friday. Economists had forecast 200,000 new employes. The October result was initially 261,000.

NFP

nfo dec 8.png

Hourly wages rose 0.2 percent in November missing the 0.3 percent prediction and October's flat statistic dropped to -0.1 percent on revision. Annual wage gains  came in at 2.5 percent, up from October's negatively revised 2.3 percent, at the low side of the the past two years and well below the average of the period  before the financial crash of 2008-2009.

Unemployment

u6 dec 8.png

 

Manufacturing payrolls rose 31,000, the second best gain of the past  four years, topped only by  August's 44,000 additions. The average workweek rose 0.1 to 34.5. 

Probably the biggest dissapointment of the report and  the likely  source of wage stagnation was the labor force participation rate which remained near its generational nadir at 62.7 percent.

Labor Force Participation

labor dec 8.png

As long as there is the large pool of unemployed and underemploed workers represented by this indicator, employers will have little need to increase pay to attract new employees.

WorldWideMarkets

Charts Thompson/Reuters

 

 

 

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