The better than expected jobs data pushed ASX listed retailers into the black today with the JB Hi-Fi Limited (ASX: JBH) share price and Wesfarmers Ltd (ASX: WES) outperforming the S&P/ASX 200 (Index:^AXJO) (ASX:XJO) during lunch time trade.
The JBH share price jumped 2.6% to $22.67 as the WES share price added 0.7% to $32.17 when the ASX 200 slipped 0.3% into the red at the time of writing.
The 37,000 new jobs that were added to our economy last month, according to the Australian Bureau of Statistics (ABS) data, were significantly ahead of the 20,000 additional jobs that economists were forecasting.
Jobs cheer
What's more, the trend unemployment rate dropped to 5.1% from 5.2% despite the record participation rate of 65.7%, which is the proportion of the population (who can work and are willing to work) looking for a job.
The data prompted investors to buy retail stocks on the belief that the extra jobs created will give consumers enough confidence to spend up this Christmas trading season.
It isn't only the JB Hi-Fi share price and Wesfarmers share price that shot up after the release of the jobs data at 11.30am today. The Harvey Norman Holdings Limited (ASX: HVN) share price joined the rally to trade 1.3% higher at $3.21 while the Woolworths Group Ltd (ASX: WOW) share price improved 0.8% to $28.88.
Not all good news
However, ASX market bears would point out that the 37,000 job additions were all part-time while full-time jobs fell 6,400 in seasonally adjusted terms.
But we'll take all the good news we can get given the absence of any cheerful news. Investors can also find solace in the fact that the housing slump isn't hurting the rest of the economy – at least not yet.
If the good jobs data can be sustained, it should ensure the property sector doesn't suffer a hard landing as mortgagees should still be able to service their loans even as property prices drop further in 2019.
Unfortunately for ASX bank investors, this reassurance isn't doing anything to lift the banking sector with the Australia and New Zealand Banking Group (ASX: ANZ) share price losing 0.7% to $23.78 while National Australia Bank Ltd. (ASX: NAB) share price shed 0.5% to $23.20.
The jobs data doesn't make up for the lack of a Santa Rally this year, but at least job security isn't an issue.
