Jobs Report, JOLTS, ADP: Takeaways from this week's reports
01/06/2024 04:01
The labor market is shaking up to be the biggest story of 2024. This week's release of economic data spotlights the current state of the economy. US job openings fell to their lowest level since March 2021. The minutes from the Federal Reserve's December meeting showed that officials believe interest rates may have reached or be near the peak. Lastly, the US employment report for December showed 216,000 jobs were added in the month, and the unemployment rate was unchanged at 3.7%. So, what are the big takeaways that investors need to know? Yahoo Finance spoke to reporters, experts, and analysts across the industry regarding the latest economic data. JOLTS report (00:00:47) On Wednesday, the Labor Department reported US job openings fell to 8.79 million in November from 8.85 million in October. "Overall I think in line with the dominant theme of the US economy which is one that remains in fair standing but showing some signs of a slow down," says Yahoo Finance's Myles Udland. "Obviously, for Powell and the Fed I think this is exactly what they are wanting to see." Fed policy meeting (00:01:50) Although the Fed signaled a possible peak in interest rates on Wednesday, officials stressed there is a lot of uncertainty in the economy and left the door open to raising rates again if needed. Innovator Capital Management Head of Research & Investment Strategy Tim Urbanowicz found the meeting "surprising" along with the markets' reaction. "I just don't see the advantage of coming out as dovish as they did, signaling multiple cuts next year," he said. "While on the flip side I think the negatives are very clear, you are loosening financial conditions and ultimately making this a more challenging battle to fight in the new year." Jobs Report (00:02:57)On Friday a strong jobs report was announced. "Ultimately a story of slowing, but slowing less than expected overall jobs growth," says Yahoo Finance's Myles Udland. "And really the simplest way that I think policymakers looks at the labor market is just are more people getting jobs than losing jobs and we continue to see that trend remain the case.
The labor market is shaking up to be the biggest story of 2024. This week's release of economic data spotlights the current state of the economy. US job openings fell to their lowest level since March 2021. The minutes from the Federal Reserve's December meeting showed that officials believe interest rates may have reached or be near the peak. Lastly, the US employment report for December showed 216,000 jobs were added in the month, and the unemployment rate was unchanged at 3.7%.
So, what are the big takeaways that investors need to know? Yahoo Finance spoke to reporters, experts, and analysts across the industry regarding the latest economic data.
JOLTS report (00:00:47)
On Wednesday, the Labor Department reported US job openings fell to 8.79 million in November from 8.85 million in October. "Overall I think in line with the dominant theme of the US economy which is one that remains in fair standing but showing some signs of a slow down," says Yahoo Finance's Myles Udland. "Obviously, for Powell and the Fed I think this is exactly what they are wanting to see."
Fed policy meeting (00:01:50)
Although the Fed signaled a possible peak in interest rates on Wednesday, officials stressed there is a lot of uncertainty in the economy and left the door open to raising rates again if needed.
Innovator Capital Management Head of Research & Investment Strategy Tim Urbanowicz found the meeting "surprising" along with the markets' reaction. "I just don't see the advantage of coming out as dovish as they did, signaling multiple cuts next year," he said. "While on the flip side I think the negatives are very clear, you are loosening financial conditions and ultimately making this a more challenging battle to fight in the new year."
Jobs Report (00:02:57)
On Friday a strong jobs report was announced. "Ultimately a story of slowing, but slowing less than expected overall jobs growth," says Yahoo Finance's Myles Udland. "And really the simplest way that I think policymakers looks at the labor market is just are more people getting jobs than losing jobs and we continue to see that trend remain the case.