Payroll jobs were unchanged in August…much worse than the analyst expected 68,000. For an economy that is 2+ years into a recovery the numbers should be much better. Here is a brief summary of last Fridays August payrolls report courtesy of Econoday:
“Apparently, the recent federal debt ceiling debate fiasco and stock market decline spooked businesses to put a hold on hiring. Payroll jobs were unchanged in August, following a revised 85,000 increase in July, and revised 20,000 in June. The market consensus (updated Thursday afternoon) called for a 60,000 increase for the latest month. Revisions for June and July were down net 58,000. As in recent months, private sector employment was a little less weak since government jobs pulled down the total. Private nonfarm payrolls edged up 17,000 in August, following a 156,000 gain in July and 75,000 increase in June. The August figure came in sharply lower than the median estimate for a 75,000 increase. (emphasis mine)”
Last Fridays report clearly shows that momentum in the labor market has stalled. At this point you can’t help but stop and think that maybe this downturn is a different kind of animal. Has the U.S. the end of the “debt super-cycle?”
While I do not know for sure what I do know is this…
We are perfectly positioned to take advantage of the current economic situation!
Do Good and Make Money!