What are you gonna believe — economics or statistics?
Today, the Bureau of Labor Statistics released their monthly employment report for May. Economists were expecting another 8 million workers lost their jobs and that the rate of unemployment would rise from 14.7% to 19.5%. Instead, according to this report, 8 million workers did NOT lose their jobs. In fact, 2.5 million workers got hired. That’s an “error” of 10.5 million — the biggest I’ve ever seen. In addition, the rate of employment didn’t increase to 19.5%. It dropped to “only” 13.3%.
There is already talk that our economic recovery will be V-shaped. The stock market clearly reflects this, but I don’t believe it. Today’s report makes next month’s report even more important — to see what revisions will be made to this month’s report.
Stay tuned . . .