US job vacancies and consumer confidence data show that the employment market remains strong
The US December JOLTs job vacancy data exceeded expectations, rising to 9.026 million. Considering the market expectation was 8.75 million, this is an upward surprise of more than two standard deviations. The quit rate remained at 2.2%, making it difficult to infer too much information from the monthly report on job vacancies changes. The response rate of the survey was quite poor. However, to some extent, this does indicate that the labor market has some resilience, giving the Federal Reserve some room for adjusting policies timing-wise. Meanwhile, consumer confidence further rebounded as expected. The Labor Market Differential Index sharply rose from 27.3 to 35.7, reaching its highest level since April last year. Although people do not want to overinterpret individual data points, this is another evidence of a strong job market.
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