Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
BREWING FINANCIAL CRISIS 2.0 Suggests RECESSION 2022 - 28th Jan 22
Financial Stocks Sector ETF XLF $37.50 Continues To Present Opportunities - 28th Jan 22
Stock Market Rushing Headlong - 28th Jan 22
The right way to play Climate Change Investing (not green energy stocks) - 28th Jan 22
Why Most Investors LOST Money by Investing in ARK FUNDS - 27th Jan 22
The “play-to-earn” trend taking the crypto world by storm - 27th Jan 22
Quantum AI Stocks Investing Priority - 26th Jan 22
Is Everyone Going To Be Right About This Stocks Bear Market?- 26th Jan 22
Stock Market Glass Half Empty or Half Full? - 26th Jan 22
Stock Market Quoted As Saying 'The Reports Of My Demise Are Greatly Exaggerated' - 26th Jan 22
The Synthetic Dividend Option To Generate Profits - 26th Jan 22
The Beginner's Guide to Credit Repair - 26th Jan 22
AI Tech Stocks State Going into the CRASH and Capitalising on the Metaverse - 25th Jan 22
Stock Market Relief Rally, Maybe? - 25th Jan 22
Why Gold’s Latest Rally Is Nothing to Get Excited About - 25th Jan 22
Gold Slides and Rebounds in 2022 - 25th Jan 22
Gold; a stellar picture - 25th Jan 22
CATHY WOOD ARK GARBAGE ARK Funds Heading for 90% STOCK CRASH! - 22nd Jan 22
Gold Is the Belle of the Ball. Will Its Dance Turn Bearish? - 22nd Jan 22
Best Neighborhoods to Buy Real Estate in San Diego - 22nd Jan 22
Stock Market January PANIC AI Tech Stocks Buying Opp - Trend Forecast 2022 - 21st Jan 21
How to Get Rich in the MetaVerse - 20th Jan 21
Should you Buy Payment Disruptor Stocks in 2022? - 20th Jan 21
2022 the Year of Smart devices, Electric Vehicles, and AI Startups - 20th Jan 21
Oil Markets More Animated by Geopolitics, Supply, and Demand - 20th Jan 21
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

The Spin On Jobs Statistics- Non-Farm Payrolls Friday

Economics / US Economy Jun 06, 2008 - 03:53 AM GMT

By: Mike_Shedlock

Economics Given that it takes 150,000 jobs to keep up with birthrate, anything under 100,000 jobs is a weak showing. Numbers under 50,000 are actually pathetic. However, it's easy to put a positive spin on things when expectations are in the gutter.

For example, consider this headline: ADP Jobs Report Rosy .

April showers bring May jobs. At least, according to ADP, that is.

On Wednesday, the ADP National Employment Report indicated that 40,000 new jobs had been added to the private sector in May, rather the 30,000 decline that economists had expected, according to

While the jump in the jobs indicator is great news for the American economy, there is reason to remain stoic when it comes to ADP reports, as they have often been at variance with U.S. government data. "ADP hasn't been a good forecaster of the job report lately. But if it's right then the economy is stronger than we thought," said David Wyss, an economist with Standard & Poor's. "So far, this isn't much of a recession."

My Comment : Great News? Please be serious. +40,000 jobs, if it happens, is not "great news". And lost in the headline euphoria is this little tidbit ....

On Wednesday, employment consulting firm Challenger, Gray & Christmas reported that U.S. companies are planning to ax 103,522 employees in May, up 15.0% from the 90,015 in April. May's planned layoffs are 46.0% higher on a year-over-year basis.

My Comment : And these tidbits ...

Major downsizing in the automotive sector, which has made provision for 30,011 layoffs, contributed to the May increase in the Challenger, Gray report. "The recovery plans that Ford and General Motors set into motion two years ago are being derailed due to skyrocketing gasoline prices," said John A. Challenger, chief executive of the firm.

Wall Street is bleeding, and bankers aren't immune. In May, the financial sector had the second-most layoffs, with 16,206 job cuts. So far in 2008, 66,031 financial jobs have been eliminated.

"There is no end in sight for the crisis in the financial sector. Every time it looks as though banks will turn the corner back toward prosperity, we hear about another major loss, which is often followed by a job cut announcement," Challenger noted.

Somehow this is called "Rosy".

Unemployment Claims

Inquiring minds just might be interested in weekly unemployment claims. CBS is reporting Unemployment Claims Show Surprise Improvement .

That is a big improvement vs. last week's headline Jobless claims drop, but monthly total at 4-year high .

Excuse me. Did I say last week's headline? I meant to say the exact same story this week except the second headline was by the Houston Chronicle. Let's take a look.

The number of laid-off workers filing claims for unemployment benefits showed an unexpected improvement last week although a key indicator of unemployment hit a four-year high.

The Labor Department reported today that applications for unemployment benefits totaled 357,000 last week, some 18,000 fewer than the previous week. That pushed applications for benefits to their lowest level since mid-April.

However, the four-week average for people receiving benefits edged up to 3.086 million, the highest level since March 6, 2004, when the country was still struggling to recover from a prolonged period of rising unemployment.

My Comment : Which of those headlines accurately reflects the picture?

The unemployment report for May will be released on Friday. Analysts are expecting that the overall civilian jobless rate will edge up to 5.1 percent, compared to 5 percent in April, and that businesses will have cut 60,000 jobs, marking the fifth straight month of job losses.

This prolonged stretch of job cuts has many economists believing the country has fallen into a recession.

However, the overall economy as measured by the gross domestic product has managed to remain in positive territory with the GDP growing at an annual rate of 0.9 percent in the first three months of the year.

My Comment : I will have something on jobs tomorrow morning. But for the first time in months I have no strong conviction headed into the report except to say that if it's an honest report, it sure won't be strong. And the idea that the GDP is growing at .9%, is a complete fabrication of reality based on absurd GDP deflators. See State Cutbacks Will Deepen Recession for more on GDP distortions.

The Bush administration is hoping that the $168 billion economic stimulus program which is mailing checks to some 130 million households and showering businesses with tax breaks will be enough to jump-start the economy and result in stronger growth in coming months.

My Comment : It won't. If spending money you don't have created growth, Zimbabwe would be the fastest growing economy in the world.

In a speech today at Harvard, Federal Reserve Chairman Ben Bernanke said he believed the economy was in a good position to weather the current hardships, including soaring energy prices. He said he believes this because there is flexibility in this realm than when the economy was hit with a series of oil shocks in the 1970s.

My Comment : Flexibility or Criminality? Even Fed governors are distancing themselves from Bernanke's foolish actions. See Fed Governors Openly Question Bernanke's Competence .

Week to week numbers are often volatile. It's the monthly averages that matter most. Also notice how some are now bragging that claims are "only" 357,000. Most of last year they were close to 300,000.

Friday we get to see how creative the folks at the BLS get with their birth/death model. Whatever it is, the mainstream media is likely to put lipstick on a pig.

By Mike "Mish" Shedlock

Click Here To Scroll Thru My Recent Post List

Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance, low volatility, regardless of market direction. Visit to learn more about wealth management for investors seeking strong performance with low volatility. You are currently viewing my global economics blog which has commentary 7-10 times a week. I am a "professor" on Minyanville. My Minyanville Profile can be viewed at: I do weekly live radio on KFNX the Charles Goyette show every Wednesday. When not writing about stocks or the economy I spends a great deal of time on photography. I have over 80 magazine and book cover credits. Some of my Wisconsin and gardening images can be seen at

© 2008 Mike Shedlock, All Rights Reserved

Mike Shedlock Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in