Employment Situation Report – November 2014

JOLTSOct2014The November employment situation was significantly stronger than expected.  Payroll jobs jumped 321,000 after gaining 243,000 in October.  Analysts expected a 230,000 rise and the November boost topped the high forecast for 275,000.  September and October gains were revised up notably by a net 44,000.  The unemployment rate held steady at 5.8 percent.  Expectations were for 5.8 percent.  Wages rose sharply in the latest month.

  • Going back to the payroll report, private payrolls advanced 314,000 after increasing 236,000 in October.  Analysts projected 225,000.
  • Goods-producing jobs gained 48,000 in November after a 28,000 advance the month before.  Manufacturing employment increased 28,000 in November, following a boost of 20,000 in October. Motor vehicles and parts rose 11,000, after increasing 5,000 the month before.  Construction jumped 20,000 after a gain of 7,000 in October.  Mining slipped 1,000 in November, following no change the prior month.
  • Private service-providing jobs jumped 266,000 after a 208,000 increase in October. Strength again was in professional & business services and retail trade.
  • Average hourly earnings jumped 0.4 percent in November after edging up 0.1 percent the month before.  Expectations were for a 0.2 percent rise. Average weekly hours edged up to 34.6 hours from 34.5 hours in October.  Analysts expected 34.6 hours.
  • The November employment report clearly shows an improving economy.  This suggests improving profits but also likely will raise chatter of the Fed moving forward the first increase in policy rates.
  • Jobs openings increased in October to 4.834 million from 4.685 million in  September.
  • The number of job openings (yellow) are up 21%  year-over-year compared to October 2013.
  • Quits are up 12%  year-over-year.  These are voluntary separations. (see light blue columns at  bottom of graph for trend for “quits”).

This is a very positive report.   It is a good sign that job openings are over 4 million for the ninth  consecutive month (almost to 5 million), and that quits are increasing  year-over-year.

By | 2014-12-17T15:32:20+00:00 December 17th, 2014|Categories: Economics, Lagging|0 Comments

About the Author:

Bryan Sanford is Vice President and Investment Officer of Charter Trust Company. He joined the firm in 2009 and is based in our Concord NH office.

Mr. Sanford received his Bachelors of Science degree from the University of New Hampshire, Durham. Mr. Sanford has held the FINRA Series 7 license.

Prior to joining Charter Trust, Mr. Sanford served in the United States Marine Corps as an infantryman. He participated in Operation Iraqi Freedom, touring in Fallujah, Iraq.

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