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Jobs Report . . . not so bad after all

11/04/2011

The monthly Jobs Report came out this morning.  Expectations were that 95 thousand new jobs were created in October, with 120 thousand new jobs in the private sector and a loss of about 25 thousand in governments.

The headline is that only 80 thousand jobs were created, with 104 thousand in the private sector and a loss of 24 thousand in the government.  Also, the unemployment rate dropped from 9.1% to 9.0%.

However, the good news is that last month’s report was revised upward.  As it turns out, the private sector produced 191 thousand jobs instead of the 137 previously reported.

The closely watched U-6 report, which counts both unemployed and those forced to work only part-time or under-employed, dropped from 16.5% to 16.2%, which is a nice improvement.

The stock market rallied on the good news but quickly sank back to a minor loss at the open.  The extra strength last month caused the rally, but weakness returned when we realized we really need 150 thousand just to stay even.

Since passage of the Stimulus Bill, the economy has gained 2.7 million jobs.  Was that because of . . . or in spite of the bill?  All I know is that there are 24 million people who need work to do, most of whom are miserable.

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