Moody's Analytics Chief Economist Predicts 7.2 Percent Growth For Friday's Job Numbers
Mark Zandi, chief economist at Moody's (NYSE: MCO) Analytics, talked ADP numbers on CNBC's Squawk Box Wednesday morning, with private sector employment increasing by 215,000 jobs in November and sporting a revise for October from 54,000 to 184,000 jobs, up 130,000 amid the window of resolution for the government shutdown.
Zandi predicted a slight job numbers decrease to 7.2 percent growth for Friday, highlighting that unemployment will move steadily south, making room for tapering to take effect next year.
In total, there were 180,000 jobs made in non-farm payrolls, with manufacturing and construction both increasing by 18,000 respectively. Small businesses grew by 102,000, medium-sized businesses by 48,000, and larger businesses by 65,000.
“This feels pretty good. You know, I have to say I'm surprised at how well the job market held in the face of what happened in Washington in September and October. So it's good news going into next year,” said Zandi.
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“Take a six month moving average of the change, and you know, if you do that, we're still, even with today's number, we're still at 175-180,000, and that's the kind of monthly job growth we've been getting for really almost three years,” said Zandi, noting a fluctuation above and below the average from month to month.
Zandi would be surprised if business hired more aggressively until more clarity comes out of Washington D.C., but nonetheless he entertained the possibility of the weak productivity growth, which he says has been at zero year over year through the third quarter, picking up slightly if the stronger GDP and jobs numbers continue.
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