Here are some points related to the jobs data which caused the surge on Friday. These are comments were made by http://cyclewave.homestead.com/
1. I have looked over the Jobs report, 33,000 of the jobs are temp hires, most of the remainder are construction jobs. There remains a lot of negative in the report. More time is going to be required to actually turn the jobs creation around.
2. another negative in todays jobs report is the drop in average hourly earnings. Given the low inflation and weak bargaining power on the part of workers seeking employment, it should not be a surprise. However, this is the first time in 14 years that hourly earnings have actually fallen. If the trend continues, it holds implications for consumer spending going forward
3. another negative in the jobs report is the fact health Insurance is skyrocketing as employers are reluctant to hire and instead use Temps. With wages falling and no benefits workers will either have no insurance or must pay for it out of pocket. That will kill consumer spending.
4. Bloomberg has a good report on the Jobs. Interesting is the fact the Govt will report in Feb 2004 they have underestimated the jobs lost by 145,000 jobs http://quote.bloomberg.com/apps/news?pid=10000006&sid=arhSwDrYdJhk&refer=home
5. One last observation of the jobs and leading indicators economic reports today. Manuf lost 29,000 jobs, manuf still weak, 33,000 temp hires, some construction and remainder service jobs. "would you like to super size that"
Not quite the wonderful news it was made out to be.
Kevin.
1. I have looked over the Jobs report, 33,000 of the jobs are temp hires, most of the remainder are construction jobs. There remains a lot of negative in the report. More time is going to be required to actually turn the jobs creation around.
2. another negative in todays jobs report is the drop in average hourly earnings. Given the low inflation and weak bargaining power on the part of workers seeking employment, it should not be a surprise. However, this is the first time in 14 years that hourly earnings have actually fallen. If the trend continues, it holds implications for consumer spending going forward
3. another negative in the jobs report is the fact health Insurance is skyrocketing as employers are reluctant to hire and instead use Temps. With wages falling and no benefits workers will either have no insurance or must pay for it out of pocket. That will kill consumer spending.
4. Bloomberg has a good report on the Jobs. Interesting is the fact the Govt will report in Feb 2004 they have underestimated the jobs lost by 145,000 jobs http://quote.bloomberg.com/apps/news?pid=10000006&sid=arhSwDrYdJhk&refer=home
5. One last observation of the jobs and leading indicators economic reports today. Manuf lost 29,000 jobs, manuf still weak, 33,000 temp hires, some construction and remainder service jobs. "would you like to super size that"
Not quite the wonderful news it was made out to be.
Kevin.
