There was more bad news than met the eye to Friday’s jobs report, even beyond the bump up in the unemployment rate.
While the top-line number of 244,000 jobs created sounded great when it came off the tape, the internals were somewhat weaker. In particular, the household survey, which is an actual head count, suggested that the job creation barely kept up with the expansion of the labor force.
Under some circumstances, the rise in the jobless rate might have suggested good news—namely that many of the millions of discouraged workers were coming off the sidelines and looking for jobs, thus being added to the count according to the Labor Department’s byzantine method of composing the labor picture.
But nothing in the data suggests that.
The labor participation rate for April, in fact, stood unchanged at 64.2 percent.
Ditto for the actual amount of people out of work, which also was unchanged at 13.7 million.
Another measure of unemployment rose as well: the so-called “real” unemployment rate, which rose to 15.9 percent, up two-tenths from the prior month. The government calls the rate the U-6, and it measures not just those looking for work and unable to find jobs but also those “marginally” attached to the labor force and those who are working part-time but who want full-time work.
There were 8.6 million of those involuntary part-time workers, a number also unchanged from the previous month.
So what did change?
McDonald’s [MCD 79.24 0.64 (+0.81%) ] said it would hire 50,000 workers, but that was outside the April reporting period, so it didn't help these numbers.
Retail created another 57,000, including 27,000 in general merchandise stores.
Leisure and hospitality continued its torrid pace of job creation, adding 46,000 to bring its three-month addition to the burgeoning job market to 46,000.
RELATED LINKS
Current DateTime: 07:44:37 06 May 2011
LinksList Documentid: 42929812
Job Creation Much Better Than Expected; Rate Hits 9%
Companies That Are Hiring
America's Most Stressful Jobs 2011
Labor Market Will Trump Higher Gas Prices
Manufacturing? There continued to be a slow rise, with 29,000 news jobs recorded, while mining added a net 11,000, most in support positions.
Professional and business services had a sold month, adding 51,000 positions.
But the average workweek, considered a key barometer of economic activity, also did not move, staying stagnant at 34.3 hours. At the same time, wages actually edged higher, up three cents, or 0.1 percent, to $22.95.
Wages, which are looked at as important for inflation expectations, have gained 1.7 percent over the past year.
The upshot, then, is that there is reason to cheer, but also some things to fear.
“In stark contrast to the payrolls figures, the household survey measure suggests that employment fell by 191,000 last month, with the labor force expanding by 235,000,” Paul Ashworth, chief US economist at Capital Economics in Toronto, wrote in a note to clients. “Overall, very encouraging, although the rebound in the unemployment rate underlines how far we still have to go.”
While the top-line number of 244,000 jobs created sounded great when it came off the tape, the internals were somewhat weaker. In particular, the household survey, which is an actual head count, suggested that the job creation barely kept up with the expansion of the labor force.
Under some circumstances, the rise in the jobless rate might have suggested good news—namely that many of the millions of discouraged workers were coming off the sidelines and looking for jobs, thus being added to the count according to the Labor Department’s byzantine method of composing the labor picture.
But nothing in the data suggests that.
The labor participation rate for April, in fact, stood unchanged at 64.2 percent.
Ditto for the actual amount of people out of work, which also was unchanged at 13.7 million.
Another measure of unemployment rose as well: the so-called “real” unemployment rate, which rose to 15.9 percent, up two-tenths from the prior month. The government calls the rate the U-6, and it measures not just those looking for work and unable to find jobs but also those “marginally” attached to the labor force and those who are working part-time but who want full-time work.
There were 8.6 million of those involuntary part-time workers, a number also unchanged from the previous month.
So what did change?
McDonald’s [MCD 79.24 0.64 (+0.81%) ] said it would hire 50,000 workers, but that was outside the April reporting period, so it didn't help these numbers.
Retail created another 57,000, including 27,000 in general merchandise stores.
Leisure and hospitality continued its torrid pace of job creation, adding 46,000 to bring its three-month addition to the burgeoning job market to 46,000.
RELATED LINKS
Current DateTime: 07:44:37 06 May 2011
LinksList Documentid: 42929812
Job Creation Much Better Than Expected; Rate Hits 9%
Companies That Are Hiring
America's Most Stressful Jobs 2011
Labor Market Will Trump Higher Gas Prices
Manufacturing? There continued to be a slow rise, with 29,000 news jobs recorded, while mining added a net 11,000, most in support positions.
Professional and business services had a sold month, adding 51,000 positions.
But the average workweek, considered a key barometer of economic activity, also did not move, staying stagnant at 34.3 hours. At the same time, wages actually edged higher, up three cents, or 0.1 percent, to $22.95.
Wages, which are looked at as important for inflation expectations, have gained 1.7 percent over the past year.
The upshot, then, is that there is reason to cheer, but also some things to fear.
“In stark contrast to the payrolls figures, the household survey measure suggests that employment fell by 191,000 last month, with the labor force expanding by 235,000,” Paul Ashworth, chief US economist at Capital Economics in Toronto, wrote in a note to clients. “Overall, very encouraging, although the rebound in the unemployment rate underlines how far we still have to go.”
| TONY45066 | May 6, 2011 10:07 AM ET |
I can testify that manufacturing in Dayton, Ohio is far from robust. I hear many more incidents of lay offs that I do hiring.
| Professor715 | May 6, 2011 10:09 AM ET |
Cox is a GOP pimp. He and Kudlow share a bed together.
| Dcrimso | May 6, 2011 10:12 AM ET |
Boy some of you are stuck. This was actually the first balanced report I've seen on CNBC in a long time.
| ital | May 6, 2011 10:14 AM ET |
Didn't even read the story. The title just represents STILL MORE cnbc.coN.
They just won't give up. We're still at DOW 6500 and crashing according to this con website.
They just won't give up. We're still at DOW 6500 and crashing according to this con website.
| observation | May 6, 2011 10:14 AM ET |
all indicators seem to point that markets and all stocks are still 30% to 40% ahead of current economic indicators. which is why you'll never see more than the current 5% to 7% of retail investors back into the market. they've been effectively frozen out by the chronic false data and QE fraud. which has gamed markets and all investment classes far out of any realistic valuations.
| Iwanttobefree | May 6, 2011 10:15 AM ET |
Please let's not shoot the messenger.
The "a long way to go" take has been used since the end of 2008. We are now almost mid 2011. So how about recognizing that we are not were we thought we would be by now..and that Larry Summers partisan read of a 4% GDP growth by end of year tells a different story. The captains at the elm are disconnected pure and simple.
The "a long way to go" take has been used since the end of 2008. We are now almost mid 2011. So how about recognizing that we are not were we thought we would be by now..and that Larry Summers partisan read of a 4% GDP growth by end of year tells a different story. The captains at the elm are disconnected pure and simple.
| OhMyMnty | May 6, 2011 10:26 AM ET |
Here it goes, manipulation in the markets again. If you read the article that states companies that are hiring, and read the 14 on the list you will note that Caterpillar is hiring, but most jobs will be over seas, then Citigroup, triple work force where, China, then most other jobs that are being created are Bankers, traders, and executives. Just a few of the companies listed will do some hiring, but they will most likely be low pay jobs. Now, tell me how is this helping the middle working class America, that has been out of work?????
| RalphPetrillo | May 6, 2011 10:32 AM ET |
CNBC is always negative, even though the job reports was better then expected. Headline should read, Decent jobs report, are more to come?
| Criminal_Intent | May 6, 2011 10:35 AM ET |
The Top Story on this and every other news website today ought to be in very large letters:
UNEMPLOYMENT RISES TO 9% AGAIN !!!!!!!!!!!!!!!!!!
UNEMPLOYMENT RISES TO 9% AGAIN !!!!!!!!!!!!!!!!!!
| oh-sheet | May 6, 2011 10:45 AM ET |
Thank You McDonalds! Goo F'in long gang.. we'll talk in July.. :)
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