Senior Economist at UOB Group Alvin Liew assesses the latest release of the US Nonfarm Payrolls.

Key Takeaways

“US jobs creation disappointed again with a 199,000 increase in Dec, well below expectations, but the upside surprise came from the unemployment rate which slipped to 3.9% (from 4.2% in Nov), below the Fed’s longer run level of 4%.”

“Wage growth continued at a brisk pace in Dec, again reflecting the growing demand and shortages for workers.”

“Taken together, the jobs market continued to make rapid improvements and the Dec numbers reflected the difficulties of hiring rather than the lack of employment opportunities.”