President Obama thinks the unemployment rate can break 8% by election day. To achieve this goal, roughly 254,000 jobs need to be added every month until then, according to Matt McDonald, a partner at Hamilton Place Strategies and a veteran of two Presidential campaigns.
The December jobs number released Friday is one step in that direction. Last month 200,000 nonfarm jobs were added and the unemployment rate dropped to 8.5% from 8.6% in November. December was the six-straight month of 100,000+ job gains. This news is very positive for the economy and Obama's re-election campaign. But the reality is that it will be hard for the economy to gain more than 250,000 jobs each month until November.
"This is a high number, beyond what we have seen in recent months," McDonald writes. "Beyond that, the unemployment rate is likely to become sticky in the mid-8 percent range as the participation rate begins to creep back up."
With that said, noRead More »from BlackRock’s Doll: November Election Is the GOP’s to Lose