Citi Expects U.S. December Nonfarm Payrolls to Rise by 75,000, Unemployment Rate at 4.7%

Citigroup economists said on Dec. 31 they expect U.S. nonfarm payrolls to increase by 75,000 in December while the unemployment rate rises to 4.7%, BlockBeats reports. They cautioned that the recent drop in jobless claims around the holiday period should be interpreted carefully, noting that initial unemployment benefit applications fell from 215,000 to 199,000 in the week of Christmas versus forecasts of 220,000 amid unusually large seasonal adjustment distortions this year. Citi added that a more reliable signal from initial claims may not emerge until late January, although layoff levels remain low, and partly attributed the expected rise in unemployment to a renewed increase in labor force participation.