Here Comes The Jobs Report

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The Bureau of Labor Statistics will release the final jobs report of 2016 at 8:30 a.m. ET.

Economists forecast that nonfarm payrolls increased by 175,000 in December, extending the record streak of job creation in the US.

The unemployment rate is expected to increase to 4.7% from 4.6%. It fell to an eight-year low because the labor force shrank as fewer people chose to look for work.

It’s the final jobs report while Barack Obama is president, although technically, the survey week for the January report will be before inauguration day. Since President-elect Donald Trump’s victory, various surveys of consumer confidence have shown that Americans’ optimism about the labor market has improved.

The jobs report is expected to show that there was wage growth in December, with economists forecasting a 0.3% increase month-on-month, and 2.8% year-on-year. This could be partly because the survey is conducted during the week of the 12th. That was a Monday in December, meaning that people who get paid bi-monthly and on the 15th of the month were accounted for.

Economists will also be watching employment in the retail sector, following indications that holiday hiring among brick-and-mortar stores was weak.

More to come …

Source: Business Insider SG