Transcript for Jobless Rate Takes Surprising Drop
We got a pleasant surprise this morning on the jobs front the unemployment figures for November came and much lower than expected. According to the Labor Department jobless rate for the month was eight point 6%. It had been expected to remain the same at 9%. Joining me now to help interpret those numbers Alex steal from the street hey Alex. -- good morning so it this is the lowest we've seen on employment in two and a half years I have to think that this is positive. Why big drop. Actually the big -- was really because more people just stop looking for jobs. So labor force participation rate actually fell and that's why he's on a reduction in the unemployment rate -- written article earlier that the unemployment rate would have been eight point 9% -- the same amount of people had stayed in the work -- so sure it's good headline news but it's not a game -- still hot and 20000. New nonfarm payroll jobs. Added to the work force that have to be seen as a step in the right direction it absolutely and a -- it's -- that was actually the private sector -- at 840000. Jobs. Now third of those jobs came in the retail sector due to Thanksgiving and Christmas hiring anticipation of Christmas hiring. And that's gonna go away. Those 50000 jobs -- going to leave is knows -- -- part time come the new year. But that still -- a good 100000 jobs in the private sector that we created that's a really good sign. In addition -- -- September October's numbers revised up to a combined total. -- seven 2000 jobs that was huge it means that we can go back and say you know what just kidding we added more jobs a great sign. -- about that revision is unusual to see sort of a discrepancy between. What the markets it's back and what we actually see -- we are today. No not at all I think that's sort of par for the course at this point because everybody uses different metrics is that so revision had been a key factor in and their recent years and -- mostly didn't get revised up and that's a very it's not. What effect do you expect the S will have on the markets today and beyond. Well today can be very tricky on average we wind up seeing the market sell off on an -- -- nonfarm payrolls day. But however we're -- the end -- the year -- -- huge rally this week the average stock in the S&P is up over 8% for the week. -- -- -- -- traders not investors needing to show positive returns for the year they're not gonna wanna miss a rally they're not gonna wanna be cut short. And betting against stocks they're going to be jumping into the market so we could see a continuation of the rally any and we did see some positive news now's a point out that the quit rate. -- actually rising right now which is a good sign is that people can actually quit their jobs because they're finding new ones and that's an underlying fact I think a lot of people miss that just shows consistently the US economy is slowly improving and that is definitely going to help. Ask Ali is still some skepticism there Alix Steel from the streets thanks a lot.
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