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The US is Working

14022020_US emplyment

The US is Working

Last Friday morning in the United States, the US Bureau of Labor Statistics (BLS) released its Employment Situation Summary. The BLS reported that in January the US economy continued to add jobs at a rate which was surprisingly strong.

In January total nonfarm payroll employment rose by 225,000. This exceeded the high end of survey expectations which had ranged from 165,000 to 220,000. The rate of monthly expansion in the US job market exceeded the average monthly gain in 2019 by 50,000 and continued an unbroken run of monthly job additions that stretches back almost a decade.

Nonfarm payroll employment (monthly changes in thousands)

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Source: US Bureau of Labor Statistics

Nonfarm payrolls are one important indicator of the strength of the US economy and consumer. Combined with a reported unemployment rate of 3.6 per cent and an increasing labor force participation rate, which now stands at 63.4 per cent, it appears that the US is performing well indeed. It will come as no surprise to clients and followers that our Montaka and Montgomery Global strategies have close to half of their exposure in the US.

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Christopher is a Portfolio Manager for the Montaka funds and the Montgomery Global funds. He joined MGIM at establishment in 2015.

This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.

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