December Jobs Data

by Jay Pestrichelli on January 4th, 2013

December jobs came in at 155k new jobs added and an unchanged unemployment rate of 7.8%. The news was met with a mild market reaction in the futures that inched upward pre-market. There were some slight revisions upward to the November number as well adding another 15k than previously reported. 

The good news was continued growth in the Healthcare sector that has been added jobs every month in every month over the last 2 years except for one. Construction had a nice pop this month as well, but based on historical data, this seems typical for December.

Two major sectors we follow, Transports and Administrative Services showed no growth for December. If either one of these sector had come through with additions like they’ve had over the past 2 years, the market might have had a much different reaction at the open. Hopefully their slowdown is only a one-month phenomenon.

The bad news came in the Retail and Information sectors. Retail has historically flattened in December, and we expect that to continue into January. Information services continued to decline and is the only sector that continues to trend lower year over year. This sector includes Telecom and while overall it isn’t very big, it encompasses stocks like Verizon and AT&T, which continue to grab headlines due to their performance and yield. 

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