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3 Feb 2015
US labour market still needs to improve – Danske Bank
FXStreet (Edinburgh) - In the view of analysts at Danske Bank, the recovery in the US labour market still has some way to go.
Key Quotes
“Employment growth has been strong over the past four months and leading indicators of the labour market such as gains in temporary help services, the level of initial jobless claims and the labour market differential from the Conference Board Consumer confidence survey have all improved”.
“However, labour participation rates have merely stabilised and remain low for most age groups. This has accelerated the move lower in unemployment and we are getting closer to the latest FOMC estimate of longer term unemployment (NAIRU), which is at 5.4%”.
“However, other slack indicators suggest that there is still a significant underutilisation of labour. The number of marginally attached workers and people who work part time for economic reasons is still elevated”.
Key Quotes
“Employment growth has been strong over the past four months and leading indicators of the labour market such as gains in temporary help services, the level of initial jobless claims and the labour market differential from the Conference Board Consumer confidence survey have all improved”.
“However, labour participation rates have merely stabilised and remain low for most age groups. This has accelerated the move lower in unemployment and we are getting closer to the latest FOMC estimate of longer term unemployment (NAIRU), which is at 5.4%”.
“However, other slack indicators suggest that there is still a significant underutilisation of labour. The number of marginally attached workers and people who work part time for economic reasons is still elevated”.