The May Jobs Report

[LPH]

Economists expected job creation of 158,000. Instead the number came in at 69,000. Stocks fell immediately - as some people grabbed the opportunity to make money.

This isn't a surprise. Gas prices hung high long enough to stall the economy. As people stopped buying then the need for people to employ stopped. It's a cycle not to be broken until someone innovates.

Republicans ceased seized on the report as an opportunity to campaign.

 

[Robert Heiny]

Seized on ... ? And, yes, it does appear that they also ceased, but maybe that's because of the cable channels I've watched today. Thanks for your update. I'll check it out on CNN with Wolf this afternoon.

 

[LPH]

Thank you for the correction - seized versus ceased. I've updated the original post.

Let's put the report in perspective. The following chart is for nonfarm employment from 2000 to December 2011.

 

[Robert Heiny]

Thanks for the chart. Useful for a comparison with the May report of 69K (which will likely be adjusted down 20K next week as the admin has done for previous reports). Looks like job starts leaves the current Fed admin vulnerable to strong political challenge.