The most important thing to note about this morning’s jobs numbers for February is the lack of a stock market reaction. As of 12:45 p.m. New York time, the Standard & Poor’s 500 stock index was up 0.16% and the Dow Jones Industrial Average was up 0.24%
Well, now we know how much the fiscal cliff crisis hurt the economy in the fourth quarter. Figures released today, January 30, showed that the U.S. economy contracted in the fourth quarter of 2012 with U.S. GDP falling 0.1%.
The U.S. economy added 146,000 jobs in November, the Bureau of Labor Statistics reported this morning. That was up slightly from the 138,000 jobs added in October. Economists surveyed by Briefing.com had forecast the addition of just 90,000 jobs in November. But it’s hard to tell what the numbers mean because of the effects of Hurricane Sandy
So do you breathe a sigh of relief that the U.S. economy isn’t falling off a cliff? I think so. The jobs added in the private sector are the biggest gain since February’s 254,000 jobs. Do you say the U.S. economy is back on track to a solid recovery? I don’t think so. the unemployment rate edged up to 8.3% in July from 8.2%
Today’s 6,000 drop in initial claims for unemployment to 357,000 brought the initial claims number to the lowest level since April 2008.
This morning the Bureau of Labor Statistics reported that the economy added 227,000 jobs in February and revised the January report to show 284,000 net jobs added that month from an earlier 243,000 estimate. Economists surveyed by Briefing.com had expected a 206,000 increase in jobs in February.
Private sector payrolls grew by just 83,000 in May. That was far below the 268,000 private sector jobs added in April and the consensus projection by economists of 180,000. So why, at 11 a.m. New York time was the Dow Jones Industrial Average down just 0.54%?
After way better than expected retail sales and pending home sales numbers, and an optimistic employment survey from ADP, the Bureau of Labor Statistic announced this morning that the economy added only 39,000 nonfarm jobs in November. That was a huge drop from the 172,000 increase in October and way short of the 130,000 expected by economists.
Today’s jobs report adds up to good news–if you so pessimistic that you were worried about the U.S. economy slipping back into a recession. The private sector is hiring—albeit slowly. Wages are climbing—even if at a snail’s pace.
The economy is growing and this data argues against a double dip recession
