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Economists Hopeful Ahead Of Friday's Jobs Report

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Economists Hopeful Ahead Of Friday's Jobs Report

Economists expect that Friday’s jobs report could show a buoyant outlook for the U.S. economy, according to The Wall Street Journal.

What’s The Deal

The U.S. Department of Labor is all set to release its November jobs report on Friday at 8:30 a.m. ET.

The November report could show a significant increase in new jobs as well as a historically low unemployment rate during the month, said economists surveyed by The Wall Street Journal.  

Jobs Could Bounce Back

The 40-days-long General Motors (NYSE: GM) strike ended in October, which helped around 48,000 people return to work. That alone, economists expect, could help drive job growth from 128,000 in October to 187,000 in November, reports The Wall Street Journal.

The average monthly job growth slightly tanked this year, from 223,000 jobs per month in 2018 to 167,000 per month in 2019, according to The Bureau of Labor Statistics.  

Unemployment Lowest In 50 Years?

The report could show the November unemployment rate the same as the October figure of 3.6%, according to The Wall Street Journal report. With that, the jobless rate will remain below 4% for 20 consecutive months. The last time the country saw a stretch like that was in the 1960s.

Labor Force Participation Rate

October’s labor force participation rate, at 63.3%, already shows the increased confidence among job seekers in the age group of 16-64, even more so among people in the age group of 25-54, whose participation rate rose to a 10-year high in October. But economists surveyed by The Wall Street Journal are concerned that more people ready to work may affect wage gains to some extent.

Wage Growth Could Be Slow

Amid hopes of a historic low employment rate, economists are concerned that wage growth could slow in November, continuing the trend that started in September. The report could show a 3% growth in average hourly earnings, according to The Wall Street Journal report.

A law wage growth suggests that finding enough workers should not be as big a problem for employers as the low unemployment rate suggests, said economist Nick Bunker to The Wall Street Journal.

“Employers are still able to fill positions, often without pushing wages too much higher,” Nick added.

Temporary Hiring Could Remain Slow

Six of the 10 months in 2019 saw a drop in temporary-work hiring. November report’s temporary hiring could continue to remain stagnant, said the economists surveyed by The Wall Street Journal. But this could also be an effect of the low unemployment rate that allowing more workers to wait for a permanent position, said the report.

Posted-In: Donald Trump Jobs Report U.S. Department of Labor Wall Street JournalNews Markets Media General Best of Benzinga

 

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