US Online Jobs Show New Year Fall

The first Friday of every month is one of the key economic readings for the economy, and that comes in the form of the monthly unemployment report and non-farm payrolls creation.  Tomorrow we will get the reading for December 2007.  As the US economy is hovering in limbo between a slowdown or a recession, you can imagine traders are looking for a glimpse of any data they can get their hands on ahead of this number.  Sometimes traders follow the Monster Employment Index, and sometimes not.

Those looking for additional softness in jobs on Friday have one more piece of ammo for their argument.  The Monster Employment Index declined in December by 14 points to 169, which is the worst reading since 168 in January 2007 and 167 in December 2006.  The index has shown a historic seasonal slowdown every December since its creation in 2004 followed by a rapid expansion in the following months.  The problem is that 2004 to 2006 were expanding economies, and the economy isn't in as good of shape this time.

When you read the summary comments it will seem even worse: Lower demand for office and administration workers in December suggests slower corporate expansion may lie ahead; Unusual drop in demand for sales opportunities indicates retailers are still cautious about hiring amid an uncertain holiday shopping season; Online demand within the financial sector remains muted; Government and healthcare are still key areas of strength; nearly all of the 20 industries and 23 occupational categories tracked by the Index registered lower online job availability compared to the previous month