I saw a lot of commentary on the cable channels yesterday with most reporting the weakness of job creation in December. Well, fine, technically they are correct. Maybe they should have read more than the first few sentences of the report or what some research assistant thought was important.
Instead of going in-depth as I sometimes do I on these types of reports I have this link to BusinessWeek, Sorting Out December's Jobs Report. They do a great job of pointing out that while the job increase of 108,000 was much lower than the predicted 200,000 the November jobs report which was 215,000, and slightly more than originally predicted, was revised to 305,000.
The article also gets into the ’04 and ’05 moving average and what is expected in ’06. They also talk about the effects of the hurricanes in ’05 and how that impacts hiring in ’06.
While the lower than anticipated job growth numbers is not good to some it is to others. This MSN Money article with this quote:
A Labor Department report on Friday showing the economy added fewer jobs than expected in December eased worry that wages were feeding inflation and would lead the Federal Reserve to keep raising rates over an extended period.