A Deeper Look at the Unemployment Data
This mornings report from the Bureau of Labor Statistics accounted for jobs growth of 54,000 (v. an expected 165k) for non-farm payrolls in the Month of May, keeping the national unemployment rate unchanged at 9.1%. May’s disappointing job market comes following two prior months of substantial positive growth (April and March) in which 232,000 and 194,000 jobs were added respectively.
Markets today are already beginning to look very bearish — DJIA (NYSE:DIA) down over 1% already this morning — in response to the news, which also does not bode well for the futures market. The latest employment statistics are prompting some to warn of a dire “employment recession,” which as one blogger demonstrates, is largely in line with statistical indicators of 9.1% base unemployment, a labor force participation rate of just 64.2%, and an employment population ratio of 58.4%, the worst since World War II.
Crashing the party with more bad news this morning was the NFIB (National Federation of Independent Businesses) which keeps an ear on small business activity through a variety of surveys and other measures issued each month. Headlining the report was this quote from NFIB Chief Economist William C. Dunkelberg,
“Job creation on main street has collapsed.”
Dunkelberg continued to offer bad news, “Twelve percent (seasonally adjusted) of small-business owners reported unfilled job openings (down 2 points). Further indications of minimal future growth include the fact that in the next three months, 13 percent plan to increase employment (down 3 points), and 8 percent plan to reduce their workforce (up 2 points). That yields a seasonally adjusted net negative 1 percent of owners planning to create new jobs, a 3 point loss from April.”
With small businesses, big businesses, government jobs, private jobs and even manufacturing (down 5k jobs this month) showing slow or no growth to speak of, the economic “recovery” continues to elude the grasp of American workers.
Don’t Miss: This Employment Ratio is at a 34 Year Low.