The consensus among Economists was that the December Jobs Report would reach 170K. No one was ready for what was reported this morning.
Our President rightfully put out the following tweet:
Lets take a closer look at the numbers:
* 312,000 new jobs
* 3.9% unemployment
* 3.2% wage growth
* 63.1 labor participation rate
There are many that are surprised to see the unemployment rate move from 3.7% to 3.9%. There is a reason for it and we should celebrate it. More than 400K workers that left the work force decided to get off the sidelines. This is what caused the unemployment rate to increase by 0.2%.
The reason we should celebrate the increase in the unemployment rate is the fact that many of those 400K people were getting government assistance (i.e. SNAP). Now they are no longer going to get government assistance but instead will begin to pay taxes from being employed.
That is a DOUBLE WHAMMY!
We save on federal funds that were given to them each month and now we start to collect payroll taxes from them each time they receive a paycheck.
From the article linked above:
The health care, food services, construction and manufacturing sectors were the primary contributors to last month’s hiring.
Health care and education services added 82,000 jobs in December, the biggest jump since February 2012. Restaurants and drinking placed posted a net gain of 40,700 jobs. Builders added 38,000 construction jobs, while manufacturers increased their payrolls by 32,000 workers.
Businesses are still searching for more workers.
Our President is well on his way to being the BEST JOBS PRESIDENT ever!