Job growth has been strong for the past several years, while inflationary pressures remain subdued. In the past 12 months, job growth has averaged 230K per month. Average hourly earnings rose 2.5% year over year. The Fed is very likely to raise the fed funds target rate in December. The strong of job growth implies that there is no reason to keep the fed funds target rate at near zero level. However, the pace of tightening is likely to restrained and gradual going forward as inflationary pressure remain subdued. Long-term interest rates should still stay at historically low levels, after rising slightly with monetary tightening, due to still low short-term interest rates, subdued inflationary pressures, elevated size of the Fed’s balance sheet, continued strong demand for safe assets, low long-term interest rates in overseas advanced economies and quantitative easing in the euro zone and Japan.”... USA jobs data, some odd anomalies which are difficult to interpret IMHO. There has to be a reason why corporate America has gone all gung ho, soft and cuddly over hiring the over 55's versus younger workers. Unless (puts on tin foil hat) there's something mischievous with the job figures and those over 55 are simply considered as working unless they state they're not. Perhaps it's just considerably cheaper to hire the over 55's...theories anyone? In October the age group that accounted for virtually all total job gains was workers aged 55 and over. They added some 378K jobs in the past month, representing virtually the entire increase in payrolls. And more troubling: workers aged 25-54 actually declined by 35,000, with males in this age group tumbling by 119,000. Since December 2007 workers aged 55 and older have gained over 7.5 million jobs in the past 8 years, whilst workers aged 55 and under have lost a cumulative total of 4.6 million jobs.
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