Free Markets, Free People

The Employment Situation: Economic Statistics for 4 Nov 11

It’s all about employment today.

The Monster employment index rose three points to 151 as online recruiting increased in October.

What everyone is really interested in today, though, is the monthly Employment Situation. A disappointing 80,000 net new jobs were created last month, which was well below an already dismal expectation of 90,000 jobs. On the plus side, sharp revisions to prior months were unveiled. September jobs were revised to 158,000 from the originally reported 103,000, while August jobs were revised to  104,000 from the original 57,000. Sadly, we need in excess of 300,000 new jobs per month to begin growing jobs at a rate that will begin to replace the million lost since 2008. Earnings rose 0.2% last month, while the average workweek remained steady at 34.3 hours.

Essentially, the job market remains moribund, though the unemployment rate dropped to 9.0%. But, that drop in the unemployment rate reflects an increase of 277,000 in employment from the household survey, rather than discouraged workers leaving the workforce, which is a positive sign, as that figure has increased for three months in a row. The broadest measure of labor underutilization, the U-6 unemployment rate (Total unemployed, plus all persons marginally attached to the labor force, plus total employed part time for economic reasons, as a percent of the civilian labor force plus all persons marginally attached to the labor force) also fell to 16.2% from last month’s 16.5%.

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Dale Franks
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5 Responses to The Employment Situation: Economic Statistics for 4 Nov 11

  • What policies could the President execute today that would lead to an unemployment rate of say 7% by October of 2012?
    None. The guy is totally clueless and has missed the decision window by a year.

  • I do see some small signs of recovery. But everything is held up now by the uncertainty coming from Europe.  I think nearly every businessman, or even just every educated person who is not a lefty ideologue has now totally discounted Team Obama and Bernanke as the pack of idiots they are, and are just waiting for regime change.
    My bet is that by the time the republicans have settled on a single candidate, the Euro situation will have stabilized, and at that time expectations of a republican win will cause a small upsurge in economic activity.  At that time Gold prices will plummet. Although they might rise in the very near future.
    I have already sold half of my gold for a tidy profit and now the rest will be pure gravy. I will sell just before it reaches $2000 because I think that will be a psychological barrier. Or if it starts to fall again I will sell.
    I bought some stocks during the August downturn and I think things will be in growth mode by the end of 2012. Now is actually a good time to buy.