Economy

Strong Job Report Shatters Expectations

Strong Job Report Shatters Expectations

"Either weakening demand will lead firms to dial back the pace of hiring or the robust pace of hiring will lead firms to ramp back up production".

The monthly average upturn in total Canadian jobs in 2018 was an uninspiring +14,000, a pullback of almost two-thirds versus 2017's comparable figure of +36,000.

The blockbuster U.S. jobs numbers starkly contrasted with the mounting fears for the global economy of recent weeks - which have seen stock prices tumble and confidence wane among corporations who foresee slowing demand and weakening sales in 2019. -China tariff war, softening manufacturing, a housing slowdown and a projected cooling in global growth. Factory activity in China and the United States have both weakened, with the Institute for Supply Management's USA manufacturing index on Thursday posting its steepest decline in a decade.

The roughly 380,000 federal workers who were furloughed in December were not included in the report because the government shutdown started after the data was collected.

The ongoing trade dispute with china has has had an effect on U.S. And global markets and investors have been wary of the Federal Reserve's plan for more interest rate hikes.

The expected continuation of steady job growth suggests that some of the risks might be - for the moment, anyway - overblown.

The December numbers follow a year of steady growth across industries - particularly manufacturing, which had its biggest boost in about a decade.

Trump called the job growth "GREAT" on Twitter.

Still, Kevin Hassett, chairman of the White House Council of Economic Advisers, cautioned on Thursday that the jobs report for January could be weak if the shutdown continues. The franchiser is also launching an apprenticeship program to attract workers, in addition to providing higher pay and benefits.

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There were job gains across many industries in December, including significant gains in education and health services (82,000), leisure and hospitality (55,000), and in manufacturing (32,000).

Restaurants and bars added 41,000 to the close the year with a 235,000 gain, down from 261,000 in 2017.

Professional and business services employment increased by 43,000 jobs last month and government payrolls rose 11,000.

Data for October and November were revised to show 58,000 more jobs added than previously reported. Workers who have struggled with disproportionately high joblessness found more opportunities.

Fresh Coat Painters, based in Cincinnati, plans to almost double the 300 employees who paint homes and businesses as it expands this year across this country.

Tara Riley, president of Fresh Coat, said that franchise owners were having to actively search for workers instead of simply posting ads in hope of finding workers. It was the most jobs added since last February and the second-best month for job creation under the Trump Administration.

According to the Bureau, the unemployment rate went up in part because 142,000 people quit their job and began looking for a new one.

The U.S. December jobs report was exceptional with employment gains of 312,000, rising labor force participation and hours worked, and average hourly earnings growth of over 3% for the third consecutive month. The strong wage gain makes a policy change unlikely. Friday's figures indicate that a higher percentage of young women are working than in the previous 18 years. "We expected a strong payroll number after the distortions of recent months due to two hurricanes, the California fires and the very cold November survey week, but this is spectacular", said economist Ian Shepherdson of Pantheon Macroeconomics.