United States stocks surged on Dec. 4, following a government report in November that exceeded job expectations in the country. Taken as an indication of a new strong economy, the news guarantee an interest rate hike in late December.
In November, the U.S. economy tallied a total of 211,000 new jobs, exceeding the target of 200,000. The surge in U.S. jobs marks the country's economic and labor market strengths. Currently, the country's rate of unemployment remains at 5 percent since 2008 and continue to align with projected job rates.
"The employment report should remove the final doubts about a rate hike at the December meeting. The clear message from the labor market to the Fed is: 'Just do it!'" said UniCredit Research's Chief U.S. economist Harm Bandholz.
The release was after Federal Reserve System Chair Janet Yellen announced that its employment report met central bank's set benchmark on first rate surge since June 2006. To align with the working age group's growth, Yellen stressed the need to create under 100,000 jobs monthly.
This is the second month where monthly reports showed job surges in the country. While October reports showed unexcited rates in consumer spending and November reports indicated a slackening in the growth of the service industry, the U.S. jobs surges should be enough to dispel the panic over soft patches in the economy.
Wages are also increasing. In November, the average earning rate per hour surged by 2.3 percent compared to the rate in 2014. Industries such as health care, construction and business services experienced the highest increase in November. There were 46,000 new jobs in construction. Both business services and health care had more than 24,000 new jobs each.
A complete recovery in the economy is awaiting the final key -- full employment. A consistent and prevalent gains in wages could also raise consumer prices and then reduce inflation by 2 percent, a rate the Federal Reserve System deems both elusive and healthy. The Congress has put the Fed in charge of keeping the consumer prices at a stable rate and maximize the country's employment.
