There was a big surge in hiring in November, with the nonfarm payrolls growing by a seasonally adjusted 321,000, far better than the predicted 228,000 new jobs; job creation for this year has averaged greater than 200,000 each month. That’s the longest stretch of +200k job creation since 1994 and makes 2014 the best year for job creation since 1999. This also illustrates the damage done during the Great Recession– the unemployment rate remains unchanged at a still high 5.8% (which still the lowest unemployment rate in 6 years).
Slow wage growth may help keep the Fed from raising rates sooner rather than later: Average hourly earnings rose by 9 cents in November, the biggest gain since June 2013, but leaves wages only up 2.1% from a year ago, barely exceeding inflation. Economists say the Fed views greater than 3.0% wage growth as a potential benchmark for bumping up the overnight rate.
Stocks are up modestly, with the Dow currently up 57 to 17,957 while bonds and rates—reacting as usual when strong economic reports suggest that the Fed might move up their timetable–are under pressure.
And if I can help anyone with Residential Financing just give me a call, thanks and Happy Holidays!
Capital City Bank
Mortgage Account Executive
1301 Metropolitan Blvd. Tallahassee, FL 32308
Toll Free: 800.245.7194