- Ian Shepherdson, chief economist at Pantheon Macroeconomics
The number of people seeking unemployment benefits fell last week, reinforcing the view the labour market continued to improve. Initial claims for jobless benefits slid 17,000 to a seasonally adjusted 297,000 in the week ended November 29, according to the Labour Department, after claims rose above the 300,000 level in the preceding week for the first time since September. Meanwhile, the four-week moving average, a less volatile measure, increased 4,750 to 299,000, albeit remaining below 300,000 for 12 consecutive weeks.
Wednesday's ADP jobs report showed the US economy added 208,000 private sector jobs in November. The ADP data is the forerunner to today's non-farm payroll report that will be closely followed by analysts and is projected to show 230,000 people were added to the US's workforce in November, while the jobless rate is seen to remain unchanged at 5.8%. The recent job gains have not lifted wages by much, stifling the potential for the US economy to expand at a more rapid pace. Average hourly pay climbed 3 cents in October to $24.57, 2% above the average wage 12 months earlier and barely ahead of a 1.7% inflation rate. Even with gains this year, around 9 million people remain out of work. Before the beginning of the in 2007, there were 7.6 million unemployed Americans.
© Dukascopy Bank SA