Jobless Recovery: Stocks Tumble on “Punk” Private Sector Hiring (411,000 temporary census workers, 41,000 from Private Sector)
On the surface, Friday’s jobs report doesn’t look so bad: Non-farm payrolls rose by 430,000 in May, the second straight month of solid gains, the unemployment rate fell to 9.7%, and the averages for hours worked and hourly earnings beat expectations.But it’s hard to put lipstick on this pig, which helped send stocks sharply lower Friday morning:
- * The payroll gain was about 100,000 jobs below consensus, far below the “whisper numbers” of as high as 800,000, and the tally for March and April was revised down.
- * A big reason the unemployment rate came down is the labor force shrank by 325,000, a sign of Americans discouraged by their prospects for finding work.
- * Over 45% of unemployed Americans have been out of work 6 months or longer and the average duration of unemployment hit a new record of 34.4 weeks.
- * At 411,000, temporary hiring of census workers accounted for the vast majority of jobs created last month while private sector payrolls rose by a paltry 41,000.
“The only part that mattered within the May payroll number was the 41,000 job add (sic) in the private sector,” writes Miller Tabak equity strategist Peter Boockvar. “Bottom line, private sector hiring remains punk.
Read the whole story at Yahoo News
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