What Does the December Jobs Report Tell Us About Growth?

Real Vision: Finance & Investing

Real Vision

Investing, Business News, News, Business

4.1 • 1.1K Ratings

🗓️ 8 January 2022

⏱️ 34 minutes

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Summary

DB-Jan 07,2022:Non-farm payrolls in the U.S. rose by 199,000 in December, which pales in comparison to the original estimate of 422,000. Despite the actual numbers landing below expectations, unemployment in the country fell to 3.9%, which was actually better than the estimated 4.1%. Wages increased 4.7% year-over-year according to the Bureau of Labor Statistics. The industries that reaped the benefits the most were leisure and hospitality. Peter Boockvar, CIO of Bleakley Advisory Group and author of The Boock Report, joins to examine the U.S labor force and inflation. Meanwhile, Bitcoin has been slipping all week and is now below $42,000, levels not seen since September last year. This too is the result of the Federal Reserve’s December meeting minutes hinting at earlier- and faster-than-expected rate hikes. In Europe, inflation hit a record high of 5% in December, leaving people debating whether the European Central Bank should be more aggressive at combating price hikes. Interviewed by Maggie Lake. Want to submit questions? Drop them right here on the Exchange: https://rvtv.io/3f3eIDe Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcript

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0:00.0	Hello and welcome to the Real Vision Deli Briefing. It's Friday, January 7th, 2022. I'm Maggie
0:10.7	Lake and here with me today is Peter Bookvar, the Chief Investment Officer of Belieckly
0:15.0	Advisory. Hi there, Peter.
0:17.0	Hey Maggie, how are you?
0:18.0	I'm doing okay. Thanks for the start of the year. Try to keep track of everything that's
0:22.3	going on. It has been a pretty busy one, a pretty volatile one. And then of course we
0:28.3	did the big payroll number out today, right? The US unemployment rate dropping to 3.9%
0:34.1	although the headline monthly payroll number was a little bit below expectation. I'd love
0:39.7	to sort of get unpack all that in a moment. But we did see that 10 year yield continuing
0:46.0	to stay elevated rising to 1.77% and the rotation out of technology and risk continued
0:52.2	the NASDAQ dropped. Another three quarters of a percent actually ending off its lows
0:56.4	for the day. Bitcoin felled with three month low trading down below 42,000 and Ethereum
1:01.1	fell over 6%. So an awful lot going on. But let's focus on jobs as we kick off here.
1:08.2	What jumped out at you from the jobs report?
1:11.4	Well, it was the household survey which well I performed the establishment survey, the
1:16.3	establishment survey showing the 1.99 relative to the estimates for 50. But it was the household
1:22.5	survey that showed more than 600,000 jobs added. And the size of the labor force increased
1:29.3	was much less than that. Therefore you got that 3.9% unemployment rate. And the all inclusive
1:34.3	U6 rate fell four tenths month over month to 7.3%. It was 7% in February 2020. Also of
1:43.4	note was the wage number. Average hourly earnings was more than expected. And on a six-month
1:50.1	annualized pace, wages are rising at a 6% rate. Now outside of a lot of the COVID data
1:58.0	noise in April, May 2020, you have to go back decades to see 6% tight wage growth. So
	...

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