It is the same story over and over again: the job market looks healthy but the salaries remain low. It’s not different this time. Jobs are up 228K with minor revisions worth +3K. Wages are up only 0.2% with a downward revision of 0.1%. This leaves the y/y wage growth at 2.5%, lower than 2.7% that was expected.
The US dollar initially dropped across the board but is now resuming its uptrend, as seen during the week. This report will not stop the FED from raising rates in December, and tax cuts are coming together nicely.
Other figures are mixed: the unemployment rate is low at 4.1% but the participation rate is also low, and this case negatively so at 62.7%. The underemployment rate, U-6, is 8%, slightly worse than expected. The employment-population ratio is 60.1%, a bit higher.
Here is a live blog of the event together with Valeria Bednarik of FXStreet:
The US economy was expected to gain around 200K jobs in November after hurricane-affected months beforehand. Wages carries expectations for a rise of 0.3% m/m and 2.7% y/y. While the event will not move the Fed from raising rates in December, it will certainly rock the US dollar as it has future implications.
