Sage Investment Club

The December jobs report is out and the top-line number is … 223k jobs were added. That is strong enough to give The Federal Reserve the green light to raise rates.

But while it was a good jobs report, it shows the inflation tax in full view. Hourly wage growth year-over-year (YoY) was 4.6% in December. Unfortunately, the inflation tax was 7.1% in November. If we assume that the inflation rate in December is the same, the REAL hourly wage growth was -2.5% YoY.

But it is likely that headline inflation cooled a bit in December as The Fed continues tightening. But unless headline inflation cooled to 4.6% YoY, the inflation tax is positive and destructive.

The average weekly hours employed fell to 34.3 while U-3 unemployment rate fell.

Here are the rest of the numbers.

The most glaring data point is Full-Time Workers -1K; Part-Time Workers +679K.

And the leading indicator for unemployment is ticking up.

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