Optimism surrounded Thursday's release of the June U.S. Labor Department Jobs Report, but although the numbers were better than expected, we still have plenty to worry about, and the economy is still in trouble.
Employers added 288,000 jobs in June. The unemployment rate dipped to 6.1% from 6.3%, the lowest level since September 2008.
Despite some encouraging figures in the jobs report, it is still peppered with troubling data - like these dismal numbers...
U.S. unemployment rate
Dow Jones Futures Up After Record Finish; Plus FB, AMZN, GM and These Top Stories
Stock market today, July 3, 2014: Dow Jones futures edged higher this morning (Thursday) by 0.1%, following a DJI record finish on Wednesday. S&P 500 futures and Nasdaq futures also signaled gains, up 0.12% and 0.24% respectively.
This morning, the Labor Department announced that the U.S. unemployment rate fell to 6.1%, as the economy added another 288,000 jobs, crushing street estimates of 215,000.
Here's what you should know is going on in the stock market today to make your Thursday profitable:
- Five Important Things Federal Reserve Chair Janet Yellen Said to Congress Today When freshly installed Fed Chair Janet Yellen went before Congress yesterday, she mostly followed the script written by her predecessor, Ben Bernanke. But now that she's in charge, everything she says will carry a great deal of weight. Here are five key takeaways from Yellen's testimony...
This Trend in the U.S. Economy Is Putting Your Job at Risk – But Can Make You Rich
The biggest, and most ignored, trend in the U.S. economy is the ongoing divide between the wealthiest members of society and the average American worker.
Real wages are falling, while unemployment is stagnant. Politicians blame greed, but that's because class warfare is a valuable tool to gain power.
I argue instead that disruptive technologies have accelerated this divide.
Just recently, I noted that the U.S. wage-productivity gap has been driven heavily by the use of automation and technology in the U.S. economy, which is displacing workers at a faster pace than new jobs and job categories have been created.
Put a different way, robots are taking our jobs.Read More...
U.S. Unemployment: Three Million Jobs in America are Waiting to be Filled
There is another side to the U.S. unemployment problem: Believe it or not, there are three million jobs going unfilled.
Employers can't seem to find the right match for more than 200,000 manufacturing jobs alone.
The transportation, utilities and trades sectors have almost half a million jobs open, waiting for the right applicant.
These positions are for vocational or skilled workers, who are in short supply.Read More...
Has Sequestration Saved the U.S. Economy?
For all the griping about the sequestration, it may prove to be one of the best economic strategies we have going for the US economy.
A pair of "austerity" economists are in the news again for an oversight in their groundbreaking research but they may be on to something all the same.
Here's what I've uncovered... Read More...
Can Wall Street Continue to Rally Without the U.S. Economy?
We haven't stepped into the Twilight Zone, but it certainly seems that way when stocks are hitting historic highs yet the economy is still so weak that the Federal Reserve is still printing money like a Third World nation.
Can we keep this up? Is this titanic battle going to last like the decades-long Japanese recovery?
Will stocks punch themselves out? Can slowing earnings keep stocks soaring?
Here's my take on what I call "The Great Discrepancy."
U.S. Economy to Get Jolt from 1.2 Million Homebuilding Jobs
An accelerating rebound in new home construction over the next two years should finally give the U.S. economy the jump-start it needs to progress toward a truly robust recovery.
New home construction continues to bounce back from the lows of 2009, after the housing bubble burst, but still has a long way to go.
With housing one of the prime drivers of the U.S. economy - historically construction accounts for 5% of the U.S. gross domestic product (GDP) and related economic activity another 13% - a spike of activity in this area could drive the growth that's long been lacking from the recovery.
"A revival in new home construction will have a huge stimulative effect on the larger economy," Brad Hunter, chief economist for housing research firm Metrostudy, told Bloomberg News. "When home construction goes up, so does demand for furniture, tile, lumber, concrete, draperies, paint and appliances of all sorts."Read More...
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.Read More...
The Great American Rebound Has Just Begun
The American "manufacturing renaissance" is not some fantasy - it is actually happening.
Jobs that had been outsourced to China and elsewhere really are returning to the United States. Believe it or not, this "reshoring" already has reversed the long, steady decline of manufacturing jobs in the U.S. In fact, since 2010, America has added 500,000 manufacturing jobs, an increase of 4.3%.
The economic and investment implications of this reversal are considerable, to say the least.
Here are three reasons the great American rebound is happening... and how to profit from it today. Read More...
U.S. Economy: "Recovery" Doesn't Fool Struggling Americans
The government's numbers - primarily the monthly data on unemployment and inflation - tell the story of a slow but gradual recovery by the U.S. economy.
But the experience of millions of Americans tells a far different story.
According to a new national survey conducted by the John J. Heldrich Center for Workforce Development at Rutgers University, many Americans continue to suffer from the impact of the Great Recession.
What's more, more than half of those surveyed believe the U.S. economy will not fully recover for another six years, and nearly one-third said the U.S. economy will never fully recover.
"Millions of households were affected to some extent by the layoffs that occurred four years ago," Mark Szeltner, the lead researcher for the Rutgers survey, told The Daily Ticker.
The Rutgers survey backs up what some other surveys have said.
Last August, in a Pew Research survey of middle-class Americans, 42% said they were worse off than they were in 2008.
A Rasmussen survey taken earlier this month showed that only 39% believed the U.S. economy would be stronger in five years - the first time, Rasmussen said, that figure had ever dipped below 40%.Read More...
The Frightening Financial Crisis Facing Young Americans
Young Americans are falling deeper and deeper into a financial crisis that will be nearly impossible to escape from in their lifetimes.
Unfortunately, the problems start at a very young age. Not only do a record number of school-age children live in poverty, but the number of homeless children in the public school system has reached an all-time high.
Even young adults who are able to attend college have trouble supporting themselves after graduation. Students take on mountains of debt to pay for school, but all too many of them can't find a decent job that covers their bills and their loans.
And those who do find jobs will likely be working for many more years than previous generations. That's because Social Security is expected to run out well before today's youngest workers retire. Those who have failed to save enough will end up working into their 60s, 70s and 80s.
"We don't know how the story ends, but we know how the story is beginning," Paul Taylor, executive vice president of the Pew Research Center, told CNN. "At the beginning, today's young people are not doing better than yesterday's young adults."
Here are 14 startling statistics painting a bleak financial picture for many young Americans.Read More...
Here's What a Jump in Pickup Sales Says About the U.S. Economy
The pickup sales growth is one of those unconventional economic indicators that can give investors a deeper insight into what's really happening in the U.S. economy.
That's because most pickup trucks are purchased by people working in the construction trades or agriculture.
So better pickup sales are a good indication of long-term confidence in construction activity by those working in the construction trades and, for farmers, a belief that crop prices will remain higher for another few years.
Along with Ford, GM and Chrysler also have reported growing pickup sales.
Sales of Ford's F-Series pickups in December 2012 totaled 68,787, the best December since 2006 and the 17th consecutive year-on-year increase in monthly F-Series pickup sales. (The Ford F-150 has been the best-selling pickup in North America since 1976 and the best-selling vehicle in North America since 1981.)Read More...
- Why the Spending Cuts Battle Looks Uglier Than Fiscal Cliff Fight President Barack Obama needs swift approval from the Republican-run Congress to raise the swollen $16.4 trillion debt ceiling next month in order to prevent the U.S. government from a default. But here's where the real battle will go down. Read More...
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."
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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.
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