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Friday, June 3, 2011

employment situation

A review of the non-farm payrolls is interesting. See Link.

The most interesting aspect of it for me is that the temporary services, which is usually a leading indicator to the employment figure, suddenly dropped after March. It was growing, and when from 30 to the negatives very quickly.

This begs the question, what happened in March that caused companies to suddenly stop hiring?

Well, the tsunami and nuclear melt down freezing the third largest economy in the world.  The more I look at the data, the more I realize just how much this disaster has hurt the supply chains and corporate psychology.

One bad month does not make a trend. IMO, the bad data seems to be justified, and I am leaning toward these numbers being an anomaly due to very extraordinary events.

Also, some good data from the report was the Ave Weekly Earnings rose again to $790.51, despite the low 83k private sector job growth.

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