Economics & Research Blog
Yet More Mis-Reported Employment News
By Dr. Joe Webb
Published: May 6, 2007
Friday's unemployment report showed 80,000 new payroll jobs, and it was characterized as mildly good. Sorry! One look at the household survey in the very same press release showed a decline in the employed workforce of -468,000 workers. Of concern to me also was that prior months payroll jobs were revised down. The Fed's interest rates are finally working but they're stuck with divergent market segments and only one interest rate. The slowing housing and construction market, happening as the Fed wanted, would let them start to ease rates. Inflation and robustness in non-housing and non-automotive sectors push them to raise rates. So they'll stay exactly where they are and hope for the best.