Expectations are high that the December jobs report will be positive and provide further signs that recent momentum with job growth will help to fuel a full scale American recovery.
Positive Trend with U.S. Jobs
According to Bloomberg’s Linda Yuew, the unemployment picture in the U.S. is showing 100,00 jobs added each month since June. Recent jobless claims are at a 3 year low. The current U.S. unemployment level of 8.6 % is at a 3 year low. Private sector hiring as reported in yesterday’s ADP report showed 378,00 jobs added, the highest level in a decade.
Creating more jobs and helping the unemployment level to improve are critical factors to help the U.S. housing industry to gain momentum. It will help to ensure that there is a recovery in the battered U.S. housing market.
Marino Valensise, a Chief Investment Officer at Baring Asset Management, told Bloomberg’s Mark Batron that employment is set to recover in the U.S. at a moderate level.
“First of all let me start by saying that in the U.S. the situation in the private sector is a lot better than probably anywhere else in the developed world so a lot of respect for what the Americans are doing there” he said.
Valensise explained that until the U.S. sorts out their housing issue, it won’t see the level of recovery that is needed to sustain a full recovery. But he admitted that he likes the entrepreneurial DNA that is present in America.
Hopefully the entrepreneurial DNA that Valensise likes in America will be transferred to the countries of Southern Europe where unemployment levels are high and causing major problems for the economic stamina of the European Union.
While the U.S. economy has been showing recent signs of improvement and recovery, the current economic situation in Europe is showing signs of recession and bleak economic growth.
On Friday in France Italian P.M. Mario Monti will be meeting with France’s President Nicholas Sarkozy to discuss economic matters. Italy’s is the third largest economy in the Euro zone. They are facing considerable austerity measures in 2012 to help deal with their high level of sovereign debts. France’s economy is showing signs of weakness and their banks are widely exposed to debt in Southern Europe.
There are growing concerns in France that the country will receive a full credit downgrade from the S & P which could be imminent sometime in January. France has a coveted AAA credit rating.
France’s Budget Minister Valerie Pecresse told Bloomberg’s Olivia Sterns, “A credit downgrade will make things more complicated but we can face up to it.”
It will be important for countries like France and Italy to achieve a balanced approach towards implementing sustainable austerity measures that will remove some of the excess that weighs down their economies while also creating important growth measures that will simultaneously ensure the economic framework for growth will materialize during the months ahead.
In 1903 Teddy Roosevelt, a former American President in the early 1900’s, spoke in New York about the importance of a securing a good job.
Roosevelt said, “Far and Away the best prize that life offers is the chance to work hard at work worth doing.”