Job creation has weakened in December in the United States

Photo: Joe Raedle Archives Getty Images/AFP

The creation of jobs in the United States has weakened in December, disappointing expectations, but the unemployment rate at 4.1 % remained at its lowest level since 17 years old, in full economic upswing.

 

According to the official report on the employment of the department of Labor released Friday, the economy created 148 000 new jobs last month, while analysts expected 188 000 net hires.

 

The unemployment rate remained at 4.1 % for the third month in a row, its lowest level since December 2000. On 2017, in the course of the first year of the administration Trump, the world’s first global economy has created 2.1 million jobs, after a gain of $ 2.2 million in 2016.

 

Analysts had been accustomed to better the previous two months where job growth was well above the bar of the 200 000.

For the past six months, the average gain [of jobs in manufacturing industries in the u.s.] has been to over 20 000.
The analyst Paul Ashworth, of Capital Economics.

But the average new hires in three months remains strong at 204 000. “It is a reflection of the labour market is very robust and this is probably not tenable on the duration of it,” said the independent economist Joel Naroff.

 

To Jason Schenker of Prestige Economics, ” the employment report was disappointing, but remains positive “.

 

It shows that for the 87th consecutive month, the us companies hire.

 

Job losses in the distribution

 

The decline in December, the pace is the lowest since four months is primarily on account of the distribution sector, which oddly enough, while the season of sales of the end of the year has been good, has destroyed more than 20 000 jobs. He had added nearly as many the month before.

 

The Federation of the retail trade has immediately responded by explaining that these figures would probably be revised due to seasonal factors. “You have to be careful and not judge the health of the sector on the basis of this initial report on jobs “, warned the federation of retailers in a press release.

 

“We are not certain that the seasonal factors used to adjust the statistics to be appropriate to reflect the transformation in the distribution sector “, added the professional organisation, referring to the shift towards online commerce.

 

The manufacturing sector goes well

 

A sector, however, has stood up well : in manufacturing industry, dear president Donald Trump who wants to revive the ” Made in America “.

 

The manufacturing sector added 25,000 jobs, which is still robust, but slightly weaker than in November.

 

“A year ago, the manufacturing industries destroyed jobs, but in the last six months, the average gain each month has been more than 20 000 “, noted Paul Ashworth, of Capital Economics.

 

Saw the rebound of the global economy and the weakness of the dollar, manufacturing jobs should continue to grow, according to him.

 

On the year, the new jobs in the building had reached 210 000, compared with 155 000 in 2016, those in the manufacturing sector amounted to 196 000, while the manufacturing industry had barely increased its workforce by 2016.

 

A little disappointing, but still solid

 

The year 2017 has ended with 926 000 unemployed less than in 2016, to 6.6 million.

 

The number of workers not finding that part-time employment remains high, at 4.9 million at the end of the year. It has, however, decreased to 639 000 in 2017.

 

In December, average hourly earnings increasing by 0.3% was a relative good news, with the increase in the average hourly wage year-on-year to 2.5 %. It is still low, barely above inflation, but it is in progress.

 

On the whole, this employment report, a bit disappointing, but that is still solid should not at this point roll back the central bank (Fed) in its desire to tighten interest rates by three times by 2018 to avoid overheating.

 

“The next rate increase will probably take place in march,” predicts Paul Ashworth of Capital Economics.

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