Friday, June 01, 2012

No Depression





69,000 jobs added in May.

Unemployment rate rises to 8.2%.

Everyone is reporting that. There is no way around it.

But what many are not reporting, or are burying, is that the minor happy dance they did for the dismal 115,000 created in April was premature, if not totally out of whack, because that number was revised DOWN to 77,000 jobs created in April.

But at least the government can say only 8,000 fewer jobs were created in May than in April, instead of 46,000.

Nevermind that the wonks were expecting 150,000 to be created this month and we fell short of that prediction (which is still not enough to help the situation any by 81,000.

So all those college students who graduated in the last month can look forward to rosy future doing what?

And all those who (foolishly) had a glimmer of hope that things may be turning around for them, that maybe that job was finally just around the corner can now look forward to what?

Meanwhile, Barack Obama is headed out today, interested in protecting only one job. His own.

While 30 million Americans are wondering how they will buy the groceries next week.

Zero Hedge:

NFP Huge Miss At 69,000 On Expectations Of 150,000; Unemployment Rate 8.2%

And we have NEW QE liftoff, just as we predicted yesterday: "That the ADP would miss today's expectations of 150K is no surprise: after all as we have been explaining for a while, the only way the Fed will have a green light to proceed with NEW QE if it so chooses at the June 19-20 meeting, is if the economic data suddenly turn horrendous. Which means tomorrow's NFP data is make or break: in fact, as far as markets are concerned, the worse the better - should a -1,000,000 NFP print come in, stocks will soar." It may take a little while for the realization to soak in. The actual number of +69,000 was a massive miss to both the expectation of 150,000, and the whisper number 100,000, and a drop from the massively revised April 77K, which was 115K before. And that is with a 204,000 addition from Birth Death. Just a total disaster for Obama who has decided to sacrifice the perception of an improving economy just so he can give Bernanke a green light to goose the stock market.

3rd monthly miss in a row...

CNBC:

US Creates 69,000 New Jobs, Unemployment Rate 8.2%


The American jobs engine hit stall speed in May, with the economy adding just 69,000 new jobs while the unemployment rate climbed to 8.2 percent.

Man Laid Off
Photo: Sturti | Vetta | Getty Images

As another summertime swoon looms, the Bureau of Labor Statistics reported that job creation missed economist estimates for 158,000 new positions and the jobless rate rose for the first time in nearly a year.

Labor force participation remains near 30-year lows though incrementally better than last month, rising to 63.8 percent.

The unemployment rate that counts discouraged workers rose as well, swelling to 14.8 percent form 14.5 percent in April.

Long-term unemployment also took a sharp upturn, with the number of those out of work for 27 weeks or more jumping from 5.1 million to 5.4 million. The average duration of unemployment moved from 39.1 weeks to 39.7 weeks.

"It's painfully obvious the economic recovery in the U.S. isn't just slowing down, it's pulling up the emergency brake. And, lack of job creation isn't the only critical concern. Wages/Income is sharply lower," said Todd Schoenberger, managing principal The BlackBay Group in New York.

"For those lucky enough to have a job, their spending power is sliding when accounting for inflation. The markets will respond negatively to this report," he added. . .

. . .The bulk of the employment gains came from the service sector, which added 84,000 jobs, while manufacturing grew 12,000. Government shaved 13,000 jobs, including 5,000 at the federal level. Private payrolls rose 82,000.



FUCK YER HOPE AND CHANGE





1 comment:

Christine said...

I'm depressed.

Please God let us get a decent president! Someone who can see beyond the hype and just get this country back on the right track.