No Excess in Labor Market
In 2005, Boberski is looking for average job growth of 140,000 per month, about 10,000 per month lower than over the past year.
Michael Gregory, a senior economist at BMO Nesbitt Burns, is slightly more optimistic, calling for around 150,000 to 175,000 jobs per month in 2005.
"We're not talking boom times here," he said. "Growth is going to be modest."
Gregory thinks there is some downside risk to his payroll estimate of 185,000 on Friday, but he still believes the Fed is right to be concerned about inflation. While wages are likely to remain contained, productivity is slowing, the dollar is declining and commodity prices are high, he said.So far, businesses have been unable or unwilling to pass high wholesale costs on to consumers. Indeed, Delta Airlines (DAL) said Tuesday that it will cut fares by up to 50% in an effort to lure more customers. Analysts say the move could intensify price wars across the industry.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV