Here Comes The Jobs Report

Source: Business Insider SG

Here Comes The Jobs Report

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

Economists forecast that nonfarm payrolls grew by 182,000 in May, according to a Bloomberg survey.

The unemployment rate is forecast to remain at 4.4%, the lowest level in a decade. That’s the more popular, official rate, which is lower than the U6 unemployment rate that includes people who are working part time for economic reasons. That rate is higher, at 8.6%.

Average hourly earnings are forecast to increase 0.2% month-on-month and 2.6% year-on-year. “In one of the greater recent puzzles in the labor market, over the past six months, average hourly earnings (AHE) have been growing at a slower rate than the previous six months,” Lewis Alexander, Nomura’s chief economist, said in a preview.

Alexander forecasts another month of sluggish wage growth because of a calendar quirk: the survey week for the jobs report, which usually includes the 12th of the month, was different from the week of May 15, when many workers get paid.

Two industries to watch in this report are retail trade, amid a wave of department store closures, and leisure and hospitality, for signs that spending is strong into summer vacation season.

More to come …

Source: Business Insider SG

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