The December jobs report was disappointing, with the economy shedding 85,000 jobs against expectations for an unchanged reading. November’s reading was revised to +4,000 from -11,000. But the unemployment rate held at 10%, which has to be disappointing, and the separate household survey showed a nasty loss of 589,000 jobs.
Some slight positives: Average hourly earnings were up 0.2% and average weekly hours held at 33.2. Temporary help agencies added 47,000 jobs, the fifth positive reading in a row and a potential precursor to gains in full-time jobs. The private nonfarm diffusion index, which measures how many industries are shedding workers vs. how many are adding them, ticked up ever so slightly to 38.7 from 38.5.
This report virtually guarantees the Fed will keep flooding the markets with easy money. That seems to be the knee jerk reaction in the marketplace, too. The Dollar Index has given up early gains … gold has swung from early losses to small gains … and deferred-month eurodollar contracts are surging. That’s the market pricing OUT Fed tightening.
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With these “created” jobs, you would think payroll tax remittances and estimated monthly payments would have ticked up. Nope.
You also would expect that the number that tracks the EMPLOYED in America would tick up. Nope again. The percentage sits at less than 65% of working age Americans are employed, that puts a whole new perspective on the BLS, BS numbers. Especially when you realize a great number of the “employed” are not fully employed, or able to pay their bills.
Just noticed the unemployment report so came over to check your blog. Thanks for the analysis.
Just read your article about how the Politicians are blaming their economic woes on the hedge funds and short salers.
It seems to me that, as you say, no one in power has the guts to do what is needed to start putting this mess we are in to a rest. I feel that my money is in dire jeopardy. I am buying silver and stashing cash out of site of any greedy politician. I know I am not alone in this as many people I talk to are doing the same. Just think if we all hid our assets in this way what would happen. The cosequences would be devastating to the Country.