pinkslip tbi

The number:

Just 36K new jobs were created. That’s well below expectations. The private sector only added 50K.

BUT! The employment rate fell to 9.0% which is remarkable. That compares to 9.4%.

Markets are still higher after the news. The market isn’t buying the news.

There were some revisions two the last couple months that were positive:

The change in total nonfarm payroll employment for November was
revised from +71,000 to +93,000, and the change for December was
revised from +103,000 to +121,000. Monthly revisions result from
additional sample reports and the monthly recalculation of seasonal
factors. The annual benchmark process also contributed to these

FWIW, the market clearly smells a big rat and doesn’t believe it was that bad. In fact, the dollar is actually up.

The full report is here.

Background: No need for a grand exposition. Analysts are looking for around 146K, and a bit les than that on the private sector number.

Here are a few of Morgan Stanley’s estimates, which are a touch more bearish than the street.

  • Total jobs: 125K
  • Private jobs: 125K
  • Construction: -25K
  • Manufacturing: +15K
  • Government: -30K
  • Average workweek: 34.2 (down from 34.3 in December)
  • Average hourly earnings $22.80 (up from $22.78 in December)

Markets are slightly higher ahead of the number

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.