Employment Numbers Look Good

Happy New Year! Alright, I'm a little late, but either way... we received some good news this year as base metals and oil declined and we received a nice jobs update on Friday 1/5/07. Even though, retail sales declined, the broad US economy may be in for a softer landing than previously anticipated as inflation pressure begins to cool down. Housing is housing, and the carnage has just begun in that sector. For this post I'd like to just focus on employment.

Employment increased by a healthy 167,000 jobs in December none of which came from the retail/trade sector which was unchanged from November. Over the year, the US economy added 1.8 million jobs.

"Total nonfarm payroll employment increased by 167,000 in December to 136.2million, following increases of 86,000 in October and 154,000 in November (as revised). Over the year, payroll employment rose by 1.8 million. In December, employment growth continued in several service-providing industries. Employment in construction was about unchanged over the month, and the number of manufacturing jobs continued to trend downward." (http://www.bls.gov/news.release/empsit.nr0.htm)

Usually an increase late in the year is attributed to seasonal hiring in retail or construction, but retail trade was flat and construction hiring was flat after a total decrease of 53,000 in October and November.

 "Employment in retail trade was little changed over the month after rising by
 39,000 in November.  Building and garden supply stores lost 8,000 jobs in
 December." (http://www.bls.gov/news.release/empsit.nr0.htm)

This jobs report is a good sign for the economy as it continues to add jobs and wages are trending upward. The key now is to make sure people put this new money from their jobs into paying down their debt and not in spending haphazardly.