Employment data was at the forefront of this week’s economic calendar.
Despite concerns regarding an impending recession the employment picture continues to be resilient as the unemployment rate remained unchanged at 3.7%.
Non-farm payrolls rose by 263,000, higher than the forecasted increase of 200,000. In addition to the above expected level of job growth, hourly earnings also surpassed expectations registering 5.1% for November compared to an anticipated increase of 4.6%.
Labor market strength enhances the commitment by the Federal Reserve to further increase interest rates to rein in the rate of inflation.
Later this month it is widely expected that the Federal Reserve’s key short-term rate, the Federal Funds Rate, will be increased by another half a percent.