December non-farm payrolls report released by the U.S. government, employment ring was an increase of 155,000, while the unemployment rate was 7.8% and unchanged from November. This means that U.S. employers Employment slight decrease in the intensity of weak economic growth can not seem to further significantly drive down the still high unemployment rate.
U.S. Department of Labor released nonfarm employment incremental line with market expectations, but slightly below the November level of (correction value today). It should be pointed out that employment growth is essentially embodied in the various fields of the economy has, in many industries, including manufacturing, construction, and health insurance.
So employment report should enhance market expectations the U.S. economy will maintain a growth rate of about 2%, this growth rate is unlikely to quickly drive down the unemployment rate, they can not contribute to the Fed to reconsider its loose monetary policy.
The company economist at High Frequency Economics O'Sullivan (Jim O'Sullivan) before the announcement of the employment report pointed out: "The U.S. economy far from rapid growth, but it does in the growth."
The unemployment rate of 7.8 percent compared with the same period last year values fell by nearly one percentage point, but still significantly higher than the average of about 6% over the past 60 years. Today, the Labor Department also said that the November unemployment rate increased 0.1 percentage points to 7.8%, the reason there is a slight change in the seasonal fluctuations in the labor market.
Most economists expect the U.S. economy this year will be a drag on tax increases and families and weak corporate expenses, after all, families and businesses are trying to cut their debt burden.
Nevertheless, today's employment report is still, get rid of the 2007-2009 recession, the U.S. labor market recovery is a slight increase.
Last month, the U.S. government has announced that Sandy hurricane hit the East Coast in late October will not have a significant impact on the employment data for November. Many economists estimate that, today, the Labor Department on November non-farm payrolls data will not be corrected. However, today the Government in November non-farm payrolls incremental raised 15,000. Economist at Capital Economics in London, Dell [microblogging] Adams (Paul Dales) said: "There is some evidence that the employment of a fundamental improvement in growth momentum."
Despite the employment revealed some of the growth momentum, but will start around March this year, a government spending cuts or to cast a shadow over the U.S. economy. Many economists estimate that this involves the military, education and other areas of spending cuts eventually postponed until next year, which will be part of bipartisan gradually cut government debt burden and deal.
At first, above government spending cuts will start this month, the value of the United States $ 600 billion also includes part of a series of austerity plan of tax increases and other content. Some economists argue that the the December employment activities may slow the austerity measures start time of uncertainty. Earlier this week, the U.S. Congress passed to avoid most of the tax increase measures, as well as to postpone the bill of the government spending cuts.
Although the transactions reached this last moment to avoid most of the "financial cliff" but the majority of wage earners take home pay in the beginning of this month will be reduced, because of its two-year payroll tax relief policy has expired. This will result in the Fed's efforts to drive down borrowing costs remaining the most important economic stimulus plan.
Since 2008, the Federal Reserve has been the benchmark interest rate at near-zero levels, in September last year, the Fed also launched open government bonds procurement plans in order to further support the borrowing. However, on Thursday the Federal Reserve released the minutes of the December policy meeting the Fed internal asset purchases will affect the degree of financial market concerns is growing.
Some analysts said before the announcement of the December employment report, employment growth is expected in December will reveal some of the stronger momentum, which should be attributed to the Fed's policy. Analyst at Nomura Securities in a research report released earlier this week, wrote: "Although the market late last year due to 'financial cliff' anxiety exists, but the financial situation in December is still on employment growth has a supporting role."
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