• For a better understanding it’s always good to look “under the hood”… Last Friday’s jobs report indicated there were 290,000 new jobs added with expectations that there would be 180,000. On the face of it, that looks like great news. But, as with anything reported by the someone other than yourself you have to dig into the details.
Of those 290,000 new jobs, 66,000 are temporary census jobs. Another 188,000 of them were due to the government’s hedonistic adjustments due to assumed “birth” and “death” of new businesses. That makes net job creation somewhere around 36,000 (290,000 – 66,000 – 188,000). No where near expectations.
Now, no where have I seen it discussed whether expectations figure in the temp census jobs and the Bureau of Labor Statistics “fudging” the numbers.
Keep in mind, our economy has to create 200,000 new jobs a month just to keep up with new and returning entrants to the job market. Things have definitely “picked up”. But, we have to ask ourselves will we be able to sustain that level of increase with the reduction in government outlays?