[video] Quick Take: Deutsche Bank Bullish on U.S. Labor Outlook
NEW YORK (TheStreet) -- The nonfarm payrolls report came in much lower than economists had expected. Carl Riccadonna, senior economist at Deutsche Bank, told TheStreet's Joe Deaux the report isn't as bad as it may appear.
December's labor report said that 74,000 new jobs were added the economy. That number is vastly lower than economists' expectations of 196,000.
Riccadonna said the terrible weather likely played some sort of role in the report. It certainly reduced the amount of hours worked, he added.
Although Deutsche Bank had the highest expectations going into the report, Riccadonna was not fazed. He said the labor trend has been very strong over the past several months and he expects that to continue into 2014.He suggested that January's nonfarm payrolls report should reflect that as well. Overall, he considered other labor stats -- such as the ADP reports and ISM numbers -- as other positive indicators on the labor market. Riccadonna concluded that policy makers were unlikely to "panic" because of this report and will likely leave monetary policy unchanged. He added the GDP growth should be strong for the fourth quarter, likely in the high-3% to 4% range. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
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