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December Hiring Is Lower Than Expected

From a rosy-glassed Associated Press:

December jobs report seen showing greater hiring

By Christopher S. Rugaber, AP Economics Writer
January 7, 2010

WASHINGTON – The government is expected to report Friday that businesses stepped up hiring in December, a trend likely to gain momentum in 2011.

Economists are predicting that employers added a net total of 145,000 jobs last month and that the unemployment rate dipped to 9.7 percent.

Remember this sentence for below.

Some are even more optimistic after a private payroll firm estimated this week that companies added nearly 300,000 jobs in December. Also encouraging was a report that fewer people applied for unemployment benefits over the past month than in any four-week period in more than two years

And a payroll tax cut that goes into effect this month will give Americans even more money in the new year. Economists expect that will boost economic growth and give businesses more confidence to hire

Meanwhile, Reuters was predicting:

Payrolls seen hitting seven-month high

By Lucia Mutikani
January 7, 2010

WASHINGTON (Reuters) – The U.S. economy probably created more jobs in December than any month since May, confirming a self-sustaining recovery is underway, but the unemployment rate is seen edging down only slightly.

Non-farm payrolls increased by an estimated 175,000 after November’s slim 39,000 gain, according to a Reuters survey

Again, remember this prediction for below.

The Labor Department will release the closely watched employment report at 8:30 a.m. and it is expected to add to a run of stronger U.S. economic data…

Nonetheless, the unemployment rate is expected to have only ticked down to 9.7 percent from 9.8 percent in November.

Strong employment numbers for December would be a boost for President Barack Obama. High joblessness cost his Democratic Party control of the U.S. House of Representatives…

Though this is an exaggeration, it points up why it has become so important to the AP and Reuters to talk up the economy.

Anyway, here at last is the Labor Department’s highly anticipated employment report for December:

Employment Situation Summary


Friday, January 7, 2011

The unemployment rate fell by 0.4 percentage point to 9.4 percent in December, and nonfarm payroll employment increased by 103,000, the U.S. Bureau of Labor Statistics reported today. Employment rose in leisure and hospitality and in health care but was little changed in other major industries…

Total nonfarm payroll employment increased by 103,000 in December. Employment rose in leisure and hospitality and in health care but changed little in other major industries. Since December 2009, total payroll employment has increased by 1.1 million, or an average of 94,000 per month.

Employment in leisure and hospitality increased by 47,000 in December. Within the industry, job gains continued in food services and drinking places (+25,000). Since a recent low in December 2009, the food services industry has added 188,000 jobs. In December, health care employment continued to expand, with a gain of 36,000. Over the month, job gains continued in ambulatory services (+21,000), hospitals (+8,000), and nursing and residential care facilities (+7,000).

Within professional and business services, employment in temporary help services continued to trend up in December (+16,000) and has risen by 495,000 since a recent low in September 2009

So we can’t help but wonder how employment increased far less than what the AP and Reuters had predicted. 145,000 to 175,000 jobs versus the actual increase of only 103,000 jobs.

And yet the unemployment rate went down more than the AP and Reuters predicted. They had predicted a decline of .1% and the Labor Department is claiming a .4% decline.

Also, where are the 297,000 private sector jobs that the ADP (and the media) just told us were created in December?

Go figure.

This article was posted by Steve on Friday, January 7th, 2011. Comments are currently closed.

3 Responses to “December Hiring Is Lower Than Expected”

  1. Rusty Shackleford says:

    “…would be a boost for President Barack Obama"

    Which, of course, is what’s really important. Wouldn’t want him to look bad, now. So the MSM must do everything it can to make him look good because he is, after all, our first totally socialist president. And he’s black. (Not that there’s anything wrong with that.)

  2. proreason says:

    Too bad there isn’t a way to bet against “expected”

  3. Liberals Demise says:

    Haven’t you seen a dead economy being whipped to life
    by a zealous media monster for its’ master?

    Once a month they parade the dead horse before the
    masses and declare it solvent. And once again we are told this is a ‘Nice Horsey’. One week later they say, “OOOPS…….it’s still dead.”

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