Is this a new normal where little-to-no job growth is, well, “normal?” Friday’s employment data was very sub-par again.
- New job formation just 96,000 on expectations of 125,000.
- The prior month’s data was revised LOWER by 22,000.
- -15,000 manufacturing jobs were lost, compared to the expected +10K.
- The unemployment rate dropped to 8.1% because a huge amount of people have stopped looking for jobs: labor force participation dropped to 63.5%, down from 63.7%.
- The labor participation rate declined from 63.7% to 63.5%, the lowest since 1981. Somehow in August the labor force declined by 368,000 people.
- College grads (and higher) are at the highest unemployment rate since the BLS began tracking.
- Since the beginning of the year, job growth has averaged 139,000 per month, compared with an average monthly gain of 153,000 in 2011.
- The real unemployment rate from the government’s report (U-6) is 14.7%.
This terrible news didn’t affect the market though. It was “bullish” because it was bad enough to make people think that this week’s 2-day FOMC meeting will bring out QE3.
Pekka Kataja ehdolle ja kaupunginvaltuustoon
56 minutes ago
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