It’s jobs day in the US, and today’s report was a rather important one.  I suppose they all are, but today’s positive report will likely mean that the Fed will be raising interest rates again next week for the third time this year.  Welcome news if you ask me, but I am still genuinely concerned that the rate of interest rate increases has been too slow.  If the next recession happens sooner rather than later it’s possible the Fed will have limited monetary policy tools at their disposal this time around.  Here are the numbers:

The US added 228,000 jobs in November, extending the record jobs growth streak another month.

Current:  86 consecutive months of growth  (Oct 10′ – Nov 17′)

* Old record:  48 consecutive months of growth

The unemployment rate remains 4.1%

The labour force participation rate remains at 62.7%

 

A lot is made of the labour force participation rate being so low and many feel it shows a lot of frustrated workers leaving the market.  On the flip side though, there is a very high number of job openings right now so the low LFPR may be a little more complicated then that.

 

So we’ll have to wait for the final statement next week, but i’d be surprised if the Fed didn’t raise rates.  Inflation is still a little low, but aside from that there’s no reason I can see for not raising rates another 25 basis points.

 

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