The U.S. labor market is back in the spotlight in the coming week with the U.S. nonfarm payrolls report on tap for a Friday morning release.
The jobs report for November, one of the most closely watched pieces of data for any month, will be under an even more intense spotlight as investors look for confirmation the Federal Reserve will pull the trigger on interest rates at their December meeting. Economists anticipate 180,000 jobs to have been added to the U.S. economy in November and for the unemployment rate to hold at 4.9%.
"Another healthy report reflecting job growth near its recent trend (175k-195k) will give the Fed added comfort to lift rates in December, though the bar for a rate move is low in our view and any print at or above the breakeven pace (roughly 100k) is likely sufficient," TD Securities analysts wrote in a note.
The U.S. economy added 161,000 jobs in October, 10,000 short of estimates but generally showcasing robust workforce trends. Average hourly earnings also rose to their highest since July, while year-over-year earnings increased to their best since 2009.
The labor market will be a running theme all week long. The ADP Employment Report for November, the unofficial reading on private payrolls ahead of the official U.S. jobs report, will be released Wednesday. Personal income and outlays for October will also be released on Wednesday, and weekly jobless claims are scheduled for their regular time on Thursday.
A December rate hike has a high probability among Wall Street pundits with any doubt after Donald Trump's recent election as U.S. president quickly evaporating. The chances of a December rate hike sit at 94%, according to CME Group fed funds futures.