A closer look at Friday's US Non-Farm Payrolls report
Friday’s US Non-farm payrolls surprised to the upside and showed that 146,000 new jobs were created during November despite the impact of Hurricane Sandy earlier in the month. The overall unemployment rate dropped to 7.7%. Surely the drop in the unemployment rate and a stronger than expected monthly report is a sign of good news, but we are approaching the figures with extreme caution. A closer look at the figures will show that the labour market conditions in the US are not improving and are in fact deteriorating as the most recent figures suggest.