On Friday, the Labor Department reported that 200,000 jobs were created in December, with 212,000 private job gains offsetting modest losses in government jobs. The unemployment rate had fallen to 8.5% from a previously reported and upwardly revised 8.7% reading.
The U-6 unemployment rate dropped a few ticks as well, to 15.2%. This number includes all unemployed persons, including those “marginally attached” to the labor force, who are ‘discouraged’ and haven’t sought work recently, as well as those working part-time who really want full-time jobs.
Overall the jobs report was a modestly positive reading on the labor market. We still have 5.6 million people unemployed for 27 weeks or more. But the trend is improving.
Negative news out of Europe helped balance out the good jobs news here at home, allowing bonds and home loan rates to recover from their initial negative reaction to the Labor Department’s report. The Euro continues to be weighed down by rising concern about member countries’ ability to get their deficits in order and their debt in manageable position.
Thursday, January 12, 2012
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