Momentum in the labor market has halted after months of higher-than-expected numbers, according to the most recent figures from the Labor Department.
U.S. employers added just 74,000 jobs in December — the lowest pace since January 2011 — and missed its estimate by more than 120,000. The blame is falling on winter weather and many analysts think the drop is just a temporary one.
Construction took the biggest hit by cutting 16,000 jobs, which is its first fall since May. Health care cut jobs (6,000) for the first time in 10 years and transportation also eliminated 1,000.
Despite the gloomy statistics, the unemployment rate dropped from 7 to 6.7 percent — its lowest since October 2008 — because people stayed at home and quit looking for jobs. Many are saying the weather played a role in that as well, and when people stop looking for jobs, the government doesn’t deem them as unemployed.
Precious metals have seen gains following the jobs report with gold climbing more than 1 percent to 1,245.21 at the time of this writing. Silver also jumped higher than 2.2 percent and currently sits around $20.80.
The employment rates were being eyed for months as the Federal Reserve hinted at tapering from its bond-buying program. With the consecutive months of an improving labor market and moderate growth in the economy, the Fed decided to drop its purchasing from $85 billion to $75 billion in December.
It will be interesting to see what the Fed does next and if the December job report has any effect on further tapering.
What do you think?
Did the weather play a role in jobs in your area?
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