The Department of Labor’s December employment report is the highlight of this week’s economic data. Economists surveyed by the Wall Street Journal estimate that the unemployment rate has fallen as employers created jobs faster.
IHS Markit will provide an insight into the health of European manufacturing with the December Purchasing Managers’ Index. The index is expected to decline slightly from 58.4 in November to 58.0 amid an ongoing supply chain crisis and rising Covid-19 infection rates in Europe.
The ISM Manufacturing Index published by the Institute for Supply Management is expected to fall slightly in December, but will remain firmly in the expansion range. The monthly report, which measures activity in US factories, showed that manufacturing was driven by strong demand but was constrained by ongoing challenges in the supply chain.
The Department of Labor will publish the vacancy and turnover survey for November. There were 3.6 million more job vacancies than jobseekers in October, highlighting the gap between employer demand and labor supply.
The US trade deficit reported by the Department of Commerce is expected to widen to $ 72.6 billion in November, about $ 5.5 billion more than the previous month. Global supply chain constraints and increased consumer demand for capital goods are some of the factors fueling the deficit.
Economists estimate US employers created jobs faster in December as the labor market continued to recover. The data reflects surveys from mid-December, before the Omicron variant led to a sharp increase in Covid-19 cases. Analysts expect the Labor Department’s December report to add 405,000 jobs, with the unemployment rate falling from 4.2% in November to 4.1%. The labor force participation rate is seen as a measure of whether workers are stepping back from the sidelines and re-entering the labor force.
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