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The Labor Department today provided a look into November’s job gains, producing the final report the Federal Reserve needs to consider moving interest rates in December. Below are five things to watch for in November’s jobs report, according to the Wall Street Journal.
1. Total Growth
This year employers have averaged about 181,000 job gains a month, but that performance has been inconsistent. In May job growth was short 24,000 jobs, then in June the labor market peaked at 271,000 payroll increases. It’s important to note where November will fall on this scale.
2. Wage Gains
Private sector workers saw an increase in wages this year, with hourly earnings advancing 2.8% compared to last October. These gains indicate healthy economic growth, robust household gains and are signs of a tightening labor market.
3. Unemployment
The unemployment rate continues to move toward pre-recession levels. It hovered around 5% most of the year, before inching down to 4.9% in Q3. These figures suggest that Americans who want or are in need of jobs have found them.
4. Baby Boomer Decline
As Baby Boomers continue to age and retire, it’s resulting in a noticeable drop in the labor force participation rate. This is somewhat worrisome, when coupled with the fact that job participation from prime-age workers between the age of 25 to 54 is also down. Should this figure tick upward in November, it’s another indicator of a strengthening labor market.
5. Rebound From Hurricane Matthew
Economists expressed that Hurricane Matthew may have been a big factor in October’s depressed payroll count by roughly 30,000 to 40,000 jobs. Now that skies are clear, November’s numbers should bounce back. [WSJ]
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