Net gain in revisions for November and December of 147,000 additional jobs. What was awesome is that November’s revision from 353,000 to 423,000, nearly a half million jobs in one month. Unemployment rate dropped to 5.6%, remember 5% is considered full employment. However, we have underlying issues such as underemployment and the Participation rate.
Year over Year job growth 3.1 million jobs, the best year for job growth since 1999!
More jobs and lower unemployment rate means wage inflation. What is great about this is we have an opportunity to offset the deflation from oil and the world’s economy with wage inflation. This means people can make more money and not hurt the economy!
Full-time workers surged, gaining 777,000 and numbering more than 120 million for the first time since July 2008. Their wages grew as well, with hourly earnings up 12 cents an hour, representing an annualized gain of 2.2 percent and the largest monthly gain in the economic recovery. according to CNBC
I know the past 7 years have been tough, the first 2 still falling and the next 5 in recovery. However, my economics Professors always said, “slow steady growth is better than big jumps.” Meaning if we grow slow and steady, we can grow for years. If we jump up to fast, the Fed will pull back the reigns and slow us down. Usually causing a recession.
I have been looking forward to seeing what was happening out there. What are people doing with their savings on Gas. What other items in the economy have dropped in price, merely due to oil’s decline. We know there will be job losses and losses to the economy from the drop in oil prices. But who wins? Will the consumer make up for those jobs. I believe the answer is a BIG Yes. Although, I have personally been hit by the drop in oil. One of my buyers for a luxury home was laid off from his job the day before we were going to write an offer. So, I see how it moves through the economy unexpectedly.
2015 will be an interesting year. What else do we have in store?
Just my opinion…