FXStreet (Córdoba) – According to analysts from Wells Fargo, today’s US jobs report that surprised to the upside might have been boosted by warm weather but still show strength.
Key Quotes:
“In December job gains were 292,000—stronger than expected. With wages up less than expected, there is a hint that seasonal factors overstated the strength of the labor market—but still strength.”
“Nonfarm employment rose 292,000 in December—a solid gain that supports continued economic growth. Warm weather may have boosted the overall number (construction employment rose 45,000), but seasonal issues from holiday hiring looked more muted.
“Overall, the job strength is clear. Job gains continue to be solid for service sectors—
professional & business, education & health and leisure & hospitality. Manufacturing employment edged up, but the trend remains very modest. Government employment has risen over the past two months—primarily state & local, which is consistent with our outlook for local governments.”
“Our medium-term view is that job gains are set to continue at a more moderate pace than the past two years as the expansion matures, although they should still remain strong enough to lower the unemployment rate on trend and put pressure on labor costs as labor force growth remains weak.”
(Market News Provided by FXstreet)