Friday, July 05, 2013

What Recovery? Unemployment Rate Stays Same, Part-Time Work Rises, Full-Time Plunges

The Obama Lapdog Media is busy spinning how the economy recovery is moving along, albeit slowly (Forbes).
The U.S. recovery continued roughly apace last month. Steady, if achingly slow, progress remains its defining characteristic, and the report is likely to little change the mindset of Federal Reserve policymakers set to reduce stimulus efforts later this year.
Employers added 195,000 workers in June, according to new Labor Department data. That’s slightly higher than economists’ projections for 165,000. Meanwhile, it falls directly in the trend of the past few months: an upwardly revised estimates for May and April respectively show 195,00 and 199,000 new jobs.
Unemployment remained steady last month at 7.6%.
But there's more that is not being reported. More part-time work is being created at a record level, while full-time work is falling (Zero Hedge).
As a reminder: jobs have quantity and quality components. The quantity component was good enough to convince the 10 Year the taper is imminent (if not stocks, which continue to trade dislocated from any and all fundamentals). But how about the quality? In a word: not good. In June, the household survey reported that part-time jobs soared by 360,000 to 28,059,000 - an all time record high. Full time jobs? Down 240,000.  And looking back at the entire year, so far in 2013, just 130K Full-Time Jobs have been added, offset by a whopping 557K Part-Time jobs. And there is your jobs "quality" leading to today's market euphoria (if only for now).

Under a Republican President, this would have been called a disaster. But under Obama, it's a booming recovery, because the media is so invested in his success.

No comments: