Jobs report

The much anticipated Job report has been published today. The numbers published look better than expected. In fact, there was an increase in hiring, 147,000 jobs were added in November versus 138,000 in October. With Super storm Sandy hitting the eastern coast last month, the word on the opinion on the street was a decline in hiring and an increase in joblessness. The unemployment rate fell to 7.7 percent the lowest since December 2008 compare to 7.9 in October. Labor force participation rate: 63.8 vs 63.9 in October. The government said Super storm Sandy had only a minimal effect on the figures. The government noted that as long as employees worked at least one day during a pay period which is two weeks for most people, its survey would have counted them as employed. In November, retailers added 53,000 positions. Temporary help companies added 18,000 and education and health care also gained 18,000. Auto manufacturers added nearly 10,000 jobs. The overall manufacturing jobs fell 7,000.

The market has reacted positively to the news: the Dow Jones has climbed 56 point in early trading, Gold price is bouncing back.

Consumer spending is increasing s well perhaps due to the holiday’s season.

The impact of the fiscal cliff ongoing battle might not be felt until we receive the data for December. Companies are not holding on hiring workers, the economy is has been slowing rebounding, consumer spending is rising. Car manufacturers have mostly reported strong positive numbers, Gas prices have fallen recently. The housing market is slowing rebounding as well.

Even though we must note that the fiscal cliff might greatly affect the economy (hiring, market…), we can see sign of hopes in the economy recovery. President Obama’s economy team might be facing challenges from the opposition but they are producing results whether small or even insignificant. As we all know, it is better to move half of an inch than not moving at all.

This article was written by Kadjolo Coulibaly Managing partner at KDL Financial LLC