December 10, 2006
Unemployment went up to 4.5% and the job growth’s figure was of 132,000 new jobs, mean while workers salary went up 0.2% leaving the hour basic salary at 16.94 dollars.
Unemployment raise to 4.5% in November which was not good news for the labor market but on the good side while most analyst expected an employment growth number of approximately 112,000 jobs it grew instead to 132,000 making up for the bad unemployment news.
If we couple the increase in jobs numbers and the raise in worker’s wages the new information is pretty good considering the negative effect of the housing market decline. It could be said then that the economy is absorbing well the job losses coming from the construction industry. In order to keep the growth rate, in jobs and wages solid the feds should restrain from raising interest rates at this moment to keep the forward momentum alive.
Job’s growth came mostly from the areas of health care, high–end occupation (white collars workers, technical and others) and hotel and restaurant employment. Also state and local government contribute adding 15,000 more jobs mostly in the education field. The 44,000 jobs lost from the auto and construction industries was well absorbed by the jobs gained in other areas of the economy.
Although the news are encouraging one have to be realistic and keep placing emphasis in a more productive and competitive economy something that will have a better chance to happen if the Chinese open their market to us. The Chinese should raise the Yuan and show more control over the black market of famous brand names reproduction. US treasury secretary Henry Paulson in his future visit to China hopefully will convince the Chinese to raise the Yuan and open up their markets to U.S. products.