Extremely Disappointing Jobs Report

Caught me by surprise – I expected the number of census hires to be much higher. Maybe with the heat rising, they decided not to fudge the numbers as much? At any rate:

After a relatively large expansion in private-sector employment in April of 224,000, the Obama administration led people to believe that the growth rate would continue in May. The White House leaked to several media sources that the number of new jobs would exceed a half-million positions, mainly through temporary Census Bureau expansion, and that the private sector would gain around 150,000 — somewhat less than April but still ahead of population growth. Instead, the actual BLS numbers missed both marks…

When you boil it down, about 20,000 private sector jobs are estimated (estimated! No one knows for sure, yet) to have been created in May. The only thing which kept the unemployment rate from shooting above 10% is the number of workers estimated (once again, estimated!) to have left the labor force. The numbers are still a bit bogus because a lot of guess work goes on with what is called the “birth/death model” – the means by which BLS throws darts at a wall and says “we say this many jobs were made ’cause the the stars aligned just right”.

Until we start creating new wealth, we cannot create new jobs in any sort of number necessary to improve overall employment. We can’t start creating wealth until we know how much wealth we have to begin with – and we can’t know that until the crash completes its process. All we did with TARP, stimulus and other such government boondoggle nonsense was prop up things which needed and still need to come down.

The question still remains – how long before the process completes? It is unknown because we simply don’t know how much longer our government and governments around the world can keep printing and borrowing money to shore up a dead economy. Eventually it must all come crashing down – but is that tomorrow? Next week? Next month? Next year? I don’t know – but I didn’t think they’d keep it going as long as they have…it could happen at any time and when it does happen, there will be little advance notice in the MSM (while people in the know will see it a couple days in advance and act accordingly).