PIMCO’s two chiefs were singing the praises of the November jobs report Friday, with CEO Mohamed El-Erian noting that the 203,000 new jobs created is “unusually good” and important as the “job additions were broad based, with virtually all sectors benefiting.”
The unemployment rate fell to 7%, its lowest level since November 2008, with the 203,000 net monthly job creation coming in above the consensus expectations of 180,000. El-Erian noted in his Fortune blog that both the labor participation rate and employment-population rate went up.
The civilian employment-population ratio nudged up in November to 58.6 from 58.3, though it has remained stubbornly low since mid-2009.
El-Erian said the Friday employment report “is really good news for Main Street,” with average earnings growing on account of both hourly wages and hours worked.
PIMCO’s Bill Gross tweeted that while jobs and growth are “better” the Fed “will now focus on core inflation, which is still 1.5%.” He also noted that wages are up “only 2%.”
Gross told Bloomberg Surveillance that there’s a 50% chance the Federal Reserve will begin tapering its monthly bond purchases in December.
“It’s at least 50-50 now,” Gross said. “There was some logic for a January starting point, but it’s clear the Fed wants out. The Fed still has to be careful even when they begin to taper,” since growth has ambled along at only about 2% so far, he told Bloomberg.