After a huge drop in the number of added jobs in December, it is expected for the first month of the year 2008 to see a 65,000 added jobs in the economy, while the unemployment rate will hold steady at 5.00% exactly as it was in December, confirming a weaker job's market as was highlighted by the fed's chairman in the statement of the FOMC rate decision two days ago.
The ADP employment report that was uncovered on Wednesday actually suggested a better reading, as the addition from the private sector alone was 130,000, but we all know that the ADP link to the nonfarm payroll is just a theory that didnÃ¢â‚¬â„¢t prove to be right yet, and we always see deviations between the two numbers, so can we depend on it to get our hopes high??!! I donÃ¢â‚¬â„¢t think soÃ¢â‚¬Â¦
Yesterday, we saw the weekly jobless claims climb by 69,000, highlighting that work during the holidays especially in Martin Luther King's holiday was largely eliminated, and suggesting tighter job's market with the beginning of the year, and here we go again a mixed up signal a head of the big report.
The ISM reports are due after the release of the jobs' report, so we're not gonna be able to track any clue from the employment sub-indices in the them, which makes the report even more vague, adding to the surprise factor and the significance this report already has.
Interest rate outlook is still not quiet clear after Wednesday, traders and analysts are talking about another 50 basis points cut in the benchmark rates, as growth has slowed down in the 4th quarter, and the housing slump is still undergoing, and consumer spending deteriorated, I think the jobs' market has the final word in the economy now, and even in the investors' minds to start pricing a new interest rate movement from the federal open market committee.