Today’s jobs report was ugly all around. U.S. companies added just 74,000 new payrolls. The unemployment rate fell to 6.7% from 7.0%, but that was due to the labour force participation rate falling to 62.8% from 63.0%.
“The December employment report was broadly weaker than expected, although some of the disappointment was likely due to bad weather,” said Goldman Sachs’ Jan Hatzius.
“[F]rom the household survey, the number of individuals who reported not being at work due to bad weather was 273k, above the December average of 138k, and consistent with a negative weather impact in the report,” he added. “This estimate, however, is very likely larger than the true weather impact on payroll employment.”
While the report was not good, Hatzius didn’t announce any change in its outlook for the economy or monetary policy.
“The information in today’s employment situation report does not change our expectation that the Fed will continue to taper its asset purchases by $US10bn at the January meeting,” he said.