Nothing to get excited about
The economy added 155,000 jobs in December, close to consensus expectations and in line with the trend over the past six months. However, the unemployment rate increased to 7.8% (unrounded 7.849%), as the labor force expanded more than household employment. Overall, today’s data follows the recent trend of slow but steady job growth. The good news is that despite the fiscal cliff and heightened uncertainty, job growth did not slow at year-end. But at the same time, we have not seen an improvement, which means the Fed will not change course. We should expect the Fed to keep the pedal to the metal.
Read the full report here.