Mecklai graph: US non-farm payrolls data in 2012

Mecklai graph of the day: US non-farm payrolls

The non-farm payroll (NFP) report is a key economic indicator for the United States. It is intended to represent the total number of paid workers in the U.S. minus farm employees, government employees, private household employees and employees of nonprofit organizations. US companies added more jobs in December than forecast ending 2012 on a higher note. The number of workers employed in the month rose by 155,000. Nonetheless, the non-farm payrolls report does bode well for the global recovery initiative and lends support to risk appetite. Recent policy moves are likely to discourage a pickup in job creation. Higher marginal tax rates will lower the returns for working for some, especially those in two-earner households where the income earned by the second worker is small relative to the primary worker. In addition, extended unemployment benefits will alter the trade-off between work and unemployment and put an upward bias to the unemployment rate. With unemployment rate refusing to budge below Fed’s comfort level 7 percent (7.8 percent currently), the central bank may think of extending the steps in place. Though the outward number appears glossy but internally we are still facing headwinds in clear picture. It would be interesting to foresee in coming weeks how central bank and government will come up with a plan over Budget and spending cuts which would indicate the prospects of Job sector for 2013. Below graph shows the month on month US Non-Farm payroll data in 2012                             Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. To read the full report click on the attachment

Read More