Jobs report weaker than expected – Unemployment rate falls largely because 160,000 leave labor force.
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The headline unemployment rate fell today but largely due to more than 160,000 people dropping out of the labor force. Headline jobs gained were 120,000 well below what the market was expecting. It is likely to be good news that the market was going on a holiday break. Employment is the backbone of any economy and while the last year brought on some better and more encouraging news regarding the employment situation the recent job numbers highlight that some momentum may be getting lost in the mix of it all. The figures also highlight a somewhat uneven growth in employment positions that pay much lower wages as the service sector in the United States continues to expand. The better quality jobs are being added but are a smaller portion of the overall job numbers.
The graph highlights the employment situation:
Not exactly a positive report so it will definitely be an interesting following week.
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