The jobs report came out last week and it was not all that good as it was reported….
The new unemployment report is out, and it has a figure that in normal times would be strong: Employers added 245,000 new jobs in November. Meanwhile, the unemployment rate dropped from 6.9% to 6.7%. But in the context of the surging pandemic, the stat about new jobs is worrisome because it comes in well below expectations of 440,000, per the Wall Street Journal. The November figure is down sharply from 610,000 in October and marks the fifth consecutive month of a decline, per the AP. And CNBC notes that things will likely get worse for the economy in the next few months until vaccines are readily available.
As infection rates go down, as the number of people vaccinated goes up, then we’ll start to see … business activity expand at a faster rate, and we will see the employment numbers pick up more strongly,” David Berson of Nationwide Mutual Insurance Co. tells the Journal. For more context, the AP notes that the economy has recovered only 12 million or so of the 22 million jobs that were lost in March and April when the pandemic began. November’s figure of 245,000 new jobs is the lowest since April.
So while many Americans are with jobs and the crisis deepens there is good news for the bastards on Wall Street…..
A weaker-than-expected jobs report didn’t hurt the markets on Friday. In fact, it might have helped as Wall Street pushed further into record territory, reports CNBC. The Dow rose 248 points to 30,218, the S&P 500 rose 32 points to 3,699, and the Nasdaq rose 87 points to 12,464. All the gains were under 1%. “In a twist of irony, the bad jobs number is positive for markets today,” Keith Buchanan of Globalt Investments tells the AP. The idea is that the weak numbers will add to the pressure on Congress to reach a stimulus deal. “The market is telling us today that if the labor market continues to show slowing momentum, it’s much more likely the powers that be in DC agree to something that’s material,” says Buchanan.
So it is a positive note that Americans are without jobs and Christmas is on the horizon…..right?
Ain’t capitalism grand?
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