Economists have rightfully panned the latest jobs report, during the same week when economic illiterate/Marxist touted his tremendous “success” with the economy.
The U.S. job market hit a speed bump in May as nonfarm employers added a seasonally adjusted 38,000 jobs, the smallest monthly gain since the economy stopped losing jobs in 2010. The jobless rate fell to 4.7%, reflecting a contraction in the size of the labor force. The Labor Department report came less than two weeks before Federal Reserveofficials gather for their June 14-15 policy meeting. Here’s how economists and analysts reacted to Friday’s dismal report.
“This was an unqualified dud of a jobs report, with the weakest month of job gains since 2010. The unemployment rate fell, but for the wrong reason as labor force participation declined for the second consecutive month. As for the Fed, this likely puts an end to the hopes of a rate hike in June, and will probably shift market expectations to September.” –Curt Long, National Association of Federal Credit Unions
“Whether or not the May report is an aberration or the leading edge of a period of weaker job market conditions remains to be seen. As corporate America grapples with lackluster earnings results, capital expenditures have already been slashed. Whether or not the business sector next starts to curtail hiring plans to further tighten their belts remains an open question, but a risk that shouldn’t be overlooked. It will take more than one report to conclude that is the case though.” –Jim Baird, Plante Moran Financial Advisors
And that 38,000 would be 25,000 if we subtract the number of new government jobs. Remember that Fed Chair Janet Yellen has said that we need 100,000 new jobs a month to keep up with population growth.
This number of new jobs is the fewest in five years. So why did the unemployment rate drop? That’s easy. Nearly 1/2 million people dropped out of the work force. The labor participation rate is at a 38 year low.
Still, delusional Obama went to Elkhart, IN earlier this week to tout his “success” with the economy, which is much like his “success” in foreign policy, border security and every other damn thing that makes a difference to your life.