STLA - A strong rebound in jobs data awaits for December - analyst

2023-12-08 15:15:52 ET

The job market will get a rebound from the workers strikes, and December will be stronger month for the jobs report, said Diane Swonk, chief economist at KPMG.

Friday’s Labor Statistics report showed that the total non-farm payroll employment increased by 199,000 in November, and the unemployment rate came down to 3.7%.

The bureau reported that employment increased in manufacturing, “reflecting the return of workers from a strike,” the report said.

But “it was a cold open [for car manufacturing plants],” Swonk said, as those plants reopened and not all the workers were back yet after the UAW strike. These affected companies like Ford ( F ), Stallantis ( STLA ) and General Motors ( GM ).

In addition, there are still workers to be called back from the motion picture and sound production sector for companies such as Warner Bros Discovery ( WBD ), Netflix ( NFLX ), and Paramount Global ( PARA ).

“So, December is going to be an even stronger month,” said Swonk.

She added that more wage increases are to be expected as UAW contracts will kick in.

Finally, the labor force participation rate was 62.8% as of November.

“We're actually seeing some people come back into the labor force that weren't there before,” she said. “To see that increase in participation is really encouraging.”

More on Jobs and Employment news:

• Jobs growth rises more than expected in November; unemployment rate ticks down
• Yields fall after jobs data; Nasdaq, S&P, Dow end mixed as investors take stock of rally
• Another Soft Landing Jobs Report
• Wall Street Breakfast: Jobs Day

For further details see: