This morning, the employment numbers (or lack there of) for last month were released, and they were horrible to say the least. The general consensus among economists was for an increase in new jobs of around 110,000; unfortunately the economists were way off because there were only roughly 18,000 new jobs created in June. This is the worst jobs number (lack of new jobs) since September 2010. As you can probably see, this is a very shocking and terrible number and does not bode well for the problematic unemployment situation in the country. Along with the lackluster jobs number, average hourly earnings for those who are employed also fell.
Not only is this poor employment data hurting the stock market this morning, the more important problem is that Corporations (and the Government) are still not hiring new workers...the number of unemployed people in the country is dangerously high (now at 9.2%), and until we start seeing a pick up in employment, the stock market AND more importantly the economy will continue to teter on the brink of falling back into a recession (similar to how things were following the collapse of the housing market).
Now, after having heard the miserable employment numbers, and having cried over my keyboard as I type, I would be remiss if I didn't throw out the caveat that one month's numbers do not make or break the economy..nor does it signal a new trend. In disecting the jobs numbers that come out each month, economists usually look at a 2-3 month time frame, so lets all hope the hiring picture picks up over the coming months...
Sorry for the gloomy and disheartening post this morning, I'll be sure to write about something more pleasant at some point today as we usher in the weekend (is it quitting time yet?).
