Job Growth Accelerates Despite Drop in Oil

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The labor market is the center of the economy. If consumers have jobs the rest falls into place, so the December ADP private payroll report was welcome good news this morning. Private-sector employment gains accelerated in December. Non-government employers added 241,000 jobs and November’s prior estimate of 208,000 jobs was revised up to 227,000 jobs. We know that one out of four jobs added since the recession has been related to energy, but so far the drop in oil prices and projected pull back in that sector has not yet translated into slower jobs growth. This positive ADP report bodes well for the more encompassing nonfarm payroll report due on Friday and may help settle recent volatility in markets. Please follow market volatility as measured by the VIX on page 35 of the Global Perspectives book.

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