The U.S. employment numbers looked pretty promising for the month of November. But there’s a catch…
Although the jobless rate dropped to 7.7%, the dip can be attributed to the fact that fewer people are actually looking for work.
And even though 146,000 jobs were added during the month, much of the boost is due to a large uptick in seasonal hiring this year.
As Stephen Gallagher, Chief U.S. Economist of Societe Generale, says, employers “seemed to go into the Thanksgiving weekend with a bit more enthusiasm and confidence over how their customer performance would be. So they may have taken on additional help this year versus last year.”
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So we’ll have a much better idea of how the job market is really faring after the holidays (not to mention the Fiscal Cliff situation) are over.