Great!! You got more government jobs

We have a disappointing jobs report. The topline numbers came in strong, but underlying that strength is the fact that the majority were created in the public sector. We have a great troop of census workers bugging people for racial information which make up the bulk of that hiring.

Nonfarm payrolls rose 431,000 in May, boosted by 411,000 temporary Census workers. Private payrolls increased only 41,000 in May, significantly below expectations. Nonetheless, over the last three months, private payrolls have risen by an average of 139,000 per month. The unemployment rate fell to 9.7% in May from 9.9% in April.


Temporarily help employment increased 31,000 in May, the eighth straight monthly gain and manufacturing payrolls increased 29,000. Manufacturing hours worked jumped 1.1% in the month. Average hourly earnings increased 0.3% in May, which resulted in year-over-year wage growth picking up to 1.9% from 1.8%.

BOTTOM LINE: A disappointing private payroll number to be sure and the unemployment rate fell for the wrong reasons (lower participation rather than higher employment) but nonetheless the report remains consistent with the theme of an economic recovery that is gradually broadening out and gaining momentum. The labor input is rising much faster than total employment as the workweek continues to expand—private-sector hours worked have risen at a rapid 4.9% pace over the last three months. Combined with higher hourly earnings, private wage income looks to have risen by about 0.6% in May—a welcome addition to personal income. In addition, there will be a temporary boost to wage incomes from the Census workers. The continued gains in factory employment and temporary help are both constructive and the 12.1% annualized increase in manufacturing hours worked over the last three months underscores our V-shaped manufacturing recovery thesis.


Source RDQ

Comments

  1. It's amazing how this administration still says we're not a nationalized government at this point. With GDP spending, the amount of nationalization that's gone on in the banking, automotive, and other industries, we still have a president who claims that we're not going in a Socialist/Communist direction. Who the hell is buying this crap any more? With the whole Census employment scam about to blow up in his face, 441,000 more jobs of people who aren't earning any money doesn't really count IMHO.

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  2. Good point. We are a nationalized government. Spending will soon eclipse GDP. When that happens, adios credit rating. Adios Amigo, Adios my friend. The road we have travelled have come to an end.

    At this pace, we will default. I know its considered a radical view, but I can't help but read the writing on the wall.

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