Labor market data has caught up with observed strength in the last six months.

It is usually a mistake to make long-term asset allocation decisions based on one or two months data. Such has been the case with the labor market reports in the last three months. The Labor Department had reported a significant slowdown in job growth in both November and December despite antidotal evidence and the growth in the number of people employed from the household survey. They corrected those numbers in January. The corporate survey data was revised upward by over 700,000 for the two months and January’s growth was reported as having been 467,000, well above the 200,000 expected. The total growth over the three-month period now stands at 1.1 million in the corporate survey.

 

PROBANK AUSTIN ADVISOR - FEBRUARY 7, 2022