Weekly Economic Update: December 11, 2023
• Yields increased over the week with the two-year Treasury note rising by 18 basis points to 4.73% while the five-year note increased by 12 basis points to 4.25%.
• The economy added 199 thousand workers to payrolls in November versus an expected 185 thousand as the labor market proved resilient on the surface, however, it is worth noting that the November figure exhibited some upward bias with nearly 50 thousand strikers returning to their jobs during the month.
• The unemployment rate fell to 3.7% from 3.9% as labor force participation rose to 62.8% with teenagers and workers over the age of 55 contributing most to the increase..
• Wage growth accelerated in November as average hourly earnings beat expectations advancing by a robust 0.4% over the month and by 4.0% over the past 12 months which is too fast for the Fed to find comfort as they continue to fight inflation.