Making Sense of U.S. Jobs Report: What's Happening?

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Jan. 10 (Bloomberg) -- Bloomberg chief Washington correspondent Peter Cook and Economics Editor Michael McKee break down the December jobs report on Bloomberg Television’s “In The Loop.”

We are trying to figure this out, how we can see a jobless rate falls to 6.7%, but at the seven small -- smallest gain in two years.

We're scratching our heads as well, trying to set these numbers, digest them.

Not only do you have the disconnect between the unemployment rate of the jobs, you'll set the 74,000 number for the month of december, get the ball before that but 201 -- 241 thousand with the best month since february.

Sub the gap between november and december.

This will be ample opportunity for revision, we'll have to see, but it is a disappointment.

Again, the 74,000 number of worst ever with iensense on over of 2011. 6.7%, the reason we brought that forward is as we have more people than ever leaving the workforce.

It is lowest number we've seen in 35 years.

That is not good news for the economy, it would particularly bad month to be an accountant or bookkeeper, 25,000 of them lost their jobs more -- last month.

I know you're right there with the numbers broke, and the immediate reaction market is what does this mean for the fed?

You saw the yield come down on the ten-year.

Does this mean that tapering is off the table for now?

This is not really going to affect tapering at all will even with the 74,000, you it is roughly in line with the last few months or so.

The fat is going to is he more than one month worth of data before making in the decision.

He will begin talking about raising interest rates, when on oblivious to 6.7 -- six 15% -- 6.5%. does guidance mean anything more to the guidance if you cannot take that seriously?

Then on what do you base your decision to buy or sell?

The other thing that stood out to me was that there were zero jobs and health care last month created.

The strength of the labor market for the last 2, 3, four years.

I'm wondering if there may be an obama carryback there.

People held off on hiring combat with my might get a payback in the next couple of months.

Do you think the republicans might latch onto that?

I think what you're going to see is more debate about the unemployment benefit situation.

We have this thing debate happening up on capitol hill of whether or not to extend emergency unemployment benefits.

This is going to supply ammunition to democrats that the time is not right to pull back on those benefits.

People are hurting.

At the same time, you have this unemployment rate going down.

When does the emergency and in terms of those additional benefits?

That is going to be a short-term political fight, but there will be a lot to chew on in this report.

Not just for those on the fed, but those of capitol hill.

Could we see the democrats yielding to a shorter extension of the jobless benefits?

I think you're going to see a growing clamor for some sort of deal.

There's a lot more appetite on the republican side for achievement deal that a one- month deal, which the democrats have been pushing even up to yesterday.

They worked really hard, even if it is going to have to be paid for.

I think the incentive to cut a deal on that is going to grow as a result of this number.

We're going to ask that of jason furman adjusted little bit.

-- in just a little bit.

Here is a quick look at other company headlights out this morning.

It was a great holiday for tiffany's. the jewelry store known for its little blue boxes reported a rise in sale in november and december.

Tiffany also maintained its full-year profit forecast.

The retailer which operates sears and kmart stores drop ceiling -- sharp lly.

This text has been automatically generated. It may not be 100% accurate.

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