Non-farm payrolls: Wages growth the missing ingredient: A mixed payrolls report for December then

David Scutt

Scutt Partners

Non-farm payrolls: Wages growth the missing ingredient: A mixed payrolls report for December then. It's clear that US labour market conditions continue to improve; every singly industry group added to payrolls during the month, total unemployed fell by 383k taking the total for 2014 to 1.688m with the unemployment rate dipping to a 6 ½ year low despite being flattered by participation. Still, despite the obvious tightening in labour market conditions, wages growth remains elusive. At 1.7% the annual rate is anaemic and unlikely to spur any significant inflationary pressures, at least in the short-term. While the unemployment rate is now approaching levels that traditionally herald wage inflation, until that becomes evident, the FOMC's policy tightening schedule for 2015 looks overoptimistic and frankly, unwarranted. (VIEW LINK)

David Scutt
Independent Market Strategist
Scutt Partners

David is a Director of Scutt Partners Pty Ltd and has successfully worked in the financial services markets over the past 12 years with both large and smaller banking groups. He has provided strategic financial analysis for currency and interest...


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