Economists had expected employment report for December will show a sustained growth of employment and stable wage growth in comparison with November, which the United States was established 266 000 jobs. But the pace was much more restrained, says CNBC.
U.S. employers closed the year by adding 145 000 places in the last month — business in the weeks just before Christmas developed a more modest pace than in the previous accounting period. The U.S. Department of labor reported that the unemployment rate in the US remained stable at 3.5%.
New jobs emerged in retail, healthcare, leisure, but fell in mining, manufacturing, transportation and warehousing.
In 2019, monthly employment gains averaged about 176 000 — the slowest pace of employment growth in 2011, although this was more than enough to prevent rising unemployment.
Stock markets showed a slight growth: the Dow Jones crossed the mark of 29 000, and then decreased to 28 980. The S&P 500 and Nasdaq also moved slowly upward.
From 2019 the growth of wages is slowing, which indicates a decline in the labour market, despite the lowest unemployment rate over the past half century. Average hourly earnings in December rose by 2.9% compared with the previous year, the slowest pace since the summer of 2018.
“Healthy employment, but weak wage growth is not the news you want to hear workers — said Robert Frick, corporate economist Federal credit Union Navy. — Given that the labour market is compacted, the fact that wages grew by only 2.9% last year, is another argument in favor of the fact that the economy, something has dramatically changed.”
Some economists had expected the figures of salaries and its growth may be higher than forecast because the U.S. economy has been slightly stronger than expected.
“I think anything would be better than looking for the market”, — said shortly before the publication of the report drew Matus, chief market strategist at MetLife Investment Management.
“Until the business starts to lay off people, I don’t see growth in the United States have fluctuated widely. We are still at the stage where we hire a lot of people,” he added.
Matus said that economists might be underestimating the creation of jobs due to the impact of the strike on General Motors data about jobs for the last two months.
Andrew Chamberlain, chief economist at Glassdoor, said: “Today’s report was a microcosm of the entire decade of the 2010s years. The middle employment growth and disappointing wage growth — a long story.”
The sectors producing goods was modest month on the back of the year, which was a trade war. In December, the industry lost 12,000 jobs, but for the year added 46 000.
However, since the share of producers account for a shrinking share of the broader labour market and only about 12% of economic activity in the United States, the problems in this sector will have a significant impact on overall job creation in the country.
Last year, the sector professional and business services and the leisure sector showed a significant increase in the number of jobs in each of these areas has created about 390 000 new jobs. Given the fact that shopping online continues to develop, the growth of jobs in the field of transport and storage was twice than lose their jobs retailers.
“Consumer spending remained high, mainly because of the monetary balance sheets of American families look very good,’ said Julia Pollack, economist, human resources at ZipRecruiter. These sustainable engines of economic growth just continue his work”.