U.S. jobs report
Despite worries the 16-day government shutdown would weigh on job growth, the October jobs report was surprisingly strong.
That's what the government is reporting, anyway...
According to the Labor Department numbers released today (Friday), employers increased headcount by 204,000 in October, handily beating the 120,000 many economists expected. The government report also showed revisions to late summer numbers, revealing an extra 60,000 jobs total were created in August and September.And here's what that means for the markets...
Here's How Many Jobs We Need to Add Every Month for the Next Four Years
Money Morning Capital Wave Strategist Shah Gilani joined Stuart Varney of FOX Business' "Varney & Co." today (Wednesday) to go over the bungled and belated September jobs report.
This month's Bureau of Labor Statistics' report, initially scheduled for release Oct. 4, was delayed until Oct. 22 on account of the government shutdown. But it looks like the extra days didn't help sort out jobs data - the BLS is now under fire for releasing numbers that simply don't add up.To continue reading, please click here...
Beware the Strange Data in the September Jobs Report
If you still needed confirmation this is the slowest economic recovery in history, you need look no further than today's (Tuesday's) September jobs report.
Total non-farm employment in the United States rose 148,000 in September, a soft number well short of the 180,000 expected. The unemployment rate itself fell to 7.2% - the lowest it's been since U.S. President Barack Obama took office.Here's why we're skeptical of the latest jobs report...
What the August Jobs Report Means for "Septaper"
Investors generally took the lackluster August jobs report as a sign the U.S. Federal Reserve will hold off announcing a tapering of its $85 billion a month bond program at the Sept. 17-18 Federal Open Market Committee (FOMC) meeting.
The Labor Department reported today (Friday) that U.S. job growth last month increased by a less-than-expected 169,000 jobs, adding to signs that economic growth likely slowed in the third quarter. The unemployment rate dipped in August to 7.3% from 7.4%. Economists were looking for employers to have increased headcount in August some 180,000.
The "Part Time-ification" of America: How We've Been Conned Again
By now, you've had a few days to digest the "wonderful" jobs numbers reported from Washington last Friday.
Well, don't get too excited about the economy. We've been conned again.
First off, 59% of all jobs created this year are in 3 sectors: Leisure/Hospitality, Retail Trade and Administrative/Waste Services. Wages in those sectors have fallen by 0.7%. These jobs pay an average of $15.80 per hour versus the $23.98 average hourly wage. Which means "jobs creation" just equals cheaper labor.
The American jobs participation rate is at 34-year lows and falling, as people give up and leave the workforce.
Underemployment is between 14% and 15% and rising.
U.S. Jobs Report: How Unemployment is Really 14%
Employers added just 88,000 jobs in March, according to the U.S. jobs report released Friday, hiring at the slowest pace since June 2012.
The number was a huge miss. Analysts expected a gain of 200,000.
"We all over shot it," Austan Goolsbee, former chairman of the Council of Economic Advisors in U.S. President Barack Obama's first administration, said on CNBC. "This is a punch to the gut. I mean, this is not a good number."
Since the government's way of calculating unemployment is frighteningly inaccurate, even with such a small amount of jobs added the unemployment rate fell from 7.7% to 7.6%.
That's because the labor force participation rate slipped from 63.5% to 63.3% -- the lowest level since 1979.
Unemployment Down, But February Jobs Report Not All Rosy
Friday's jobs report from the U.S. Bureau of Labor Statistics is a mixed bag.
The report had some positive news, as the unemployment rate fell to 7.7%, the lowest rate since December 2008.
While the preliminary numbers for February show that 236,000 new jobs were created, exceeding analyst estimates by a wide margin, the figure for January was revised down from 157,000 to 119,000. However, the December number was revised up from 196,000 to 219,000. So for the three months of December 2012-February 2013, the economy has added a total of 574,000 jobs, well above expectations.
But despite the increase in the number of jobs, the main reason for the decline in the unemployment rate is that fewer people are participating in the labor market.
The participation rate fell by 0.1 percentage points to 63.5% in February as 130,000 people dropped out of the labor force. The employment-population ratio remained flat at 58.6%.
February Jobs Report: Here's What to Expect
Economists expect nonfarm payrolls to show a gain of 160,000 jobs in February, with the unemployment rate holding steady at 7.9%, when the Labor Department releases the February jobs report tomorrow (Friday) at 8:30 a.m.
Employment growth has averaged 177,000 per month over the last six months, and February is expected to fall short. Â
One reason is the 2% payroll tax cut that ended with 2012, leaving workers with less disposable income. Also, top income earners were slapped with a higher tax rate.
The full tax impact wasn't felt in January, but retailers and restaurants are beginning to feel the pain.
What the December U.S. Jobs Report Tells Us About 2013
The December U.S. jobs report released Friday showed the country's unemployment rate failed to improve in the last month of 2012, with the economy adding only 155,000 jobs.
The unemployment rate, originally reported as 7.7% for November, was revised upward for that month to 7.8%, and stayed the same for December.
The figure was roughly in line with expectations. Estimates for the number of jobs created in December ranged between 140,000 and 160,000.
Non-farm payroll hiring in December was most robust in health care, which created 45,000 jobs. Manufacturing, construction and hospitality also logged strong gains.
Oddly, employment dipped in retail during the holiday-sales month, which is usually the most active time for the sector.
The government also shed jobs, dropping 13,000.
After eliminating some 653,000 jobs from 2008 to 2011, state and local governments kept headcount mostly even in 2012. The decline in December could be attributed to the economic uncertainty hanging over Capitol Hill.
The Pentagon has warned that workers may have to be furloughed if the debate over raising the U.S. debt ceiling, set to be taken up in a few weeks, is dragged out past next month.
Also weighing on government hiring is the pack of problems that will challenge growth, like rising worker pension costs, steep spending cuts and reduced federal funding that will likely kick in during 2013.
As Moody's chief economists told USA Today, "The fiscal headwinds will be blowing hard in 2013."
To continue reading, please click here...
U.S. Jobs Report: What to Expect from December
The ADP employment report out today (Thursday) offered a glimpse of what to expect Friday in the December U.S. jobs report from the Labor Department.
The private sector created 215,000 new jobs in December, much more than the 133,000 jobs economists had expected, and a sharp increase from the previous month, according to the report.
The biggest gains were in the category of trade/transportation/utilities, which grew by 53,000.
Gains in construction hiring were also robust, with 39,000 positions added in December, the U.S. jobs report said.
The healthy showing in this struggling sector was attributed mostly to relief work after Hurricane Sandy. But the slow, yet steady recovery in the housing market also deserves some of the credit.
Medium-sized businesses led job creation, adding 102,000 new jobs. Large businesses followed with 87,000 new jobs.
Bucking the trend was manufacturing; the sector shed 11,000 positions while service providers increased headcount by 187,000, according to data from Moody's Analytics.
The strong showing was a surprise, given months of cautionary words from a bevy of analysts and the Congressional Budget Office.
The analysts and the CBO had warned the fiscal cliff saga would lead to massive job losses and cutbacks in business expansion, hiring and investment.
"The most surprising thing is that despite all the brinkmanship over the fiscal cliff drama and the debate about that, businesses didn't change their hiring plans. They seemed to slow up their investment spending but not on their hiring, so that's very, very encouraging," Mark Zandi, Moody's Analytics chief economist, told CNBC.
To continue reading, please click here...