Friday, September 02, 2011

Jobs Report - Quick breakdown

Expectations were for 70k jobs created in August and the actual number came in at zero. Yes, you read that right zero. The unemployment rate was unchanged, but July's number was also revised down substantially. This is definitely worse than I expected but as I said yesterday, expectations are silly. The reality is the jobs market is bad and deteriorating. If we had shown growth of 20k, 50k, 100k or 0 jobs in August it wouldn't really matter in the big picture because we aren't growing. Average hourly earnings were down, the average work week was down, part-time employment was up, the birth/death model was +87k (who knows how much that added to total jobs but it was inline with my guess of +70-90k) and over 165k people just left the workforce. All told this is about as weak a jobs report as we've seen in the past couple of years. If I could recommend some stimulative spending: The BLS needs to buy a couple of new servers. It's 10minutes after the release and the full statement still isn't accessible online. So far the market is reacting negatively to this news, but watch for the QE3 cheerleaders to try and stage a rally on this bad news.

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