7 Apr 2014
US employment on the right track - Societe Generale
FXStreet (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale, underlines the good performance of the US labour market.
Key Quotes
"Since the fourth quarter of 2011, US employment growth has been stuck in a 1.5-1.9% annual rate, and Friday's NFP gain was smack in the middle, at 1.7%. Over the same period, real GDP growth has averaged 2.3%."
"This compares with average payroll growth of just 1% since 1990 and average real GDP growth of 2.5%. Employment growth is good enough to keep the unemployment rate trending lower but GDP growth languishes.Meanwhile, despite a tick up in unemployment and a tick down in wage growth, the link between those two seems to be restored and since labour force growth is well below 1% per annum, it is still likely that we will see wage growth pick up further in the months ahead."
Key Quotes
"Since the fourth quarter of 2011, US employment growth has been stuck in a 1.5-1.9% annual rate, and Friday's NFP gain was smack in the middle, at 1.7%. Over the same period, real GDP growth has averaged 2.3%."
"This compares with average payroll growth of just 1% since 1990 and average real GDP growth of 2.5%. Employment growth is good enough to keep the unemployment rate trending lower but GDP growth languishes.Meanwhile, despite a tick up in unemployment and a tick down in wage growth, the link between those two seems to be restored and since labour force growth is well below 1% per annum, it is still likely that we will see wage growth pick up further in the months ahead."