US Economy Added A Robust 292000 Jobs In December

Manufacturing, a sector feeling the brunt of an export slowdown tied to a stronger dollar, added 35,000 jobs during 2015 after adding more than 200,000 in 2014.

This month the economy added 292,000 total non-farm (TNF) jobs, slightly above the 221,000 monthly average for 2015. November’s payroll gain of 252,000 was revised from an initially reported 211,000.

US employers added 292,000 jobs in December.

As only 100,000 new jobs are needed each month to keep up with population growth, the unemployment rate should have dropped in September.

Employment increased last month in professional and business services (+73,000 jobs), construction (+45,000 jobs), healthcare (+39,000 jobs), food services and drinking places (+37,000 jobs), and transportation and warehousing (+23,000 jobs).

The labor participation rate was little changed in December, and average wages fell by a penny. Average hourly earnings in December fell by 1 cent to $25.24 compared to the prior month and increased 2.5 percent compared to a year ago.

In the wake of soft reports on manufacturing, construction spending and export growth, economists this week slashed their fourth-quarter growth estimates by as much a full percentage point to as low as a 0.4 percent annual rate.

The Labor Department’s closely monitored jobs report, which will be released on Friday at 8:30 a.m. (1330 GMT), could offer a brief respite to global stock markets after heavy selling this week sparked by signs of slowing growth in China. The Dow Jones Industrial average has tumbled more than 5 percent in the first four days of trading this week.

Payroll growth surged in December, capping the second-best year for American workers since 1999 and further evidence of a resilient job market that prompted the Federal Reserve to raise interest rates. This so- called base effect will probably result in some payback with the January employment report when earnings come up against a strong January 2015 comparison. The bulk of new jobs in the USA are in health care, retail and professional services, which are more shielded from the global economy, analysts say. A certain amount of unemployment is healthy for an economy, because workers should feel confident leaving a job or entering the job market to look for work. The unemployment rate remained at 5 percent.

Gross’s Janus Global Unconstrained Bond Fund rose 0.2 percent in the last 12 months, beating 80 percent of its peers, according to data compiled by Bloomberg. Hourly earnings ticked up 2.5 percent year-over-year.

“There are a lot of indicators that show the economy continues to move in the right direction”, U.S. Secretary of Labor Tom Perez told CNNMoney.

For now, Americans are confident enough to buy more homes. Employment in mining shrank by 8,000 in December and the industry has posted job losses every month since December 2014.