Real Unemployment Situation:

[Mr. T]

Real Unemployment Situation: Approximately 26,000,000 Unemployed or Underemployed. Job Growth in $10 per Hour Jobs while $20 per Hour Jobs Disappear.

 

On Friday, we learned that the unemployment rate jumped to 9.4 percent from last month’s 8.9 percent. The BLS data surveys 160,000 businesses and government agencies that affect roughly 400,000 people so the data does cover a large portion of Americans and gives us a good sample size. The markets were largely moving sideways on Friday unable to make sense of the mixed data because we are still largely living through a highly volatile market.

 

Yet the interesting thing that happened on Friday was the jobs lost in May were much smaller than expected. The market was expecting a 500,000+ job loss month and only 345,000 jobs were lost for the month. Yet the market was also expecting a rise of the unemployment rate to 9.2 percent while it spiked up to 9.4 percent, the 0.5 percent jump is tied for the largest monthly jump since the recession started (the other major monthly jump occurred in February).

 

So this is good news right? Well any time we see job losses abating that in fact is good news but we have to look at the data more closely before arriving at any major conclusions:

 

Article comtinued here.