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jobs report

January Jobs Report Shows Growth Despite The Shutdown

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January jobs report

The January jobs report was released on Friday and, despite the government shutdown, there was growth in the job market once again. This marks 100 months of consecutive growth. President Trump took to Twitter to celebrate the latest Trumponomics triumph.

The Job Market Post-Government Shutdown

Although there were another 304,000 jobs added to the market in January the employment rate went up slightly. There is no doubt this is due to the fact that many government workers were forced to file for unemployment or assistance during this time.

That being said, many people were pleasantly surprised by the post-shutdown jobs report. It showed the economy added 304,000 jobs during the first month of the year. The number 304,000 does not reflect any jobs impacted by the shutdown because the Labor Department knew those individuals would be paid eventually and, therefore, were reported as gainfully employed.

What Did The January Jobs Report Say?

The unemployment rate was up due to government workers not able to collect a paycheck. However, it only increased by 0.01 percent from December. There is speculation that the unemployment rate should have actually been higher (4.1 percent).

Another note to take away from the January jobs report is the number of people taking on part-time jobs increased. This was likely due to people being out of work during the shutdown. The Labor Department reported that 490,000 more people were working part-time in January but were searching for full-time work. So, there is still plenty left to be desired where the United States job market is concerned.

Despite the continued growth in the job market, the government shutdown did have a real impact on 800,000 workers in the U.S. Some people were unable to pay bills or put food on their table. Not to mention, the unemployment rate is on the rise again (largely due to the shutdown). And, if no agreement is made soon, it will happen again.

Readers, what do you think about the possibility of another shutdown? What do you think the long-term impact may be?

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US Economy Adds 280000 Jobs in May

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Labor Department May 2015 jobs report said 280,000 new jobs added

The always anticipated monthly jobs report was released by the Labor Department on Friday revealing some positive news for the U.S. economy. The report showed 280,000 jobs had been added for the month of May. This comes as a surprise for many as the projected total growth was for 220,000 jobs. Despite the welcome surprise, the unemployment rate did rise slightly to 5.5% from 5.4% in April. This rise is likely due to more Americans deciding that it was a good time to start looking for work, thus increasing the competition for jobs and rendering the dissatisfied applicants to go on unemployment.

Off to a rather unpleasant start, the first three months of 2015 were slightly worrying. March was the worst month of the year with only 119,000 jobs added and later revisions also reduced the numbers from the January and February reports. May’s reported jobs growth proved to be the determining factor for economists that 2015 has turned itself around.

The 280,000 jobs added is well above the average

The job growth shows a great deal of confidence from job-seekers and employers alike. According to economists, the steady hiring from April through May is expected to continue through the remaining months of 2015

The highest numbers came from the healthcare and hospitality industries, the latter of which includes restaurants. The healthcare industry showed an increase of 57,700 jobs and the leisure and hospitality industry added 57,000 numbers. Construction also demonstrated greatly to the job growth with an additional 17,000 jobs in May.

Despite these strong numbers, some concern has been raised due to the fact that worker wages only increased to 2.3% in year-over-year earnings. This number is higher than the estimated 2.2% but much lower than the 3.5% the Federal Reserve would be happy seeing.

The slightly higher rate of worker pay is at least a step in the right direction and the job gains in May should lead to an increased rise in worker compensation. “Employers recognize that in order to attract skilled workers, they need to increase wages,” says Managing Director at D.A. Davidson, Sharon Stark. Many experts agree that the greater the competition is for jobs, the more job wages will increase.

May was also a good sign for part-time and temporary workers looking for more hours and greater opportunity for an increased income. Over 630,000 full-time jobs were added in May, contributing to the increase of 2.6 million full-time jobs over the past year.

With the release of May’s report, economists and those with a keen interest in the labor market are now looking forward to June 17th when Federal Reserve Chair Janet Yellen will speak to the press on a matter of topics including whether or not interest rates, which have been at near-zero to stimulate the economy, will be raised in September. If the decision is made to raise the interest rates, it is a sound sign that those at the top are fully confident that the U.S. economy has bounced back from the Great Recession that rocked the U.S economy officially from 2007-2009, though its effects are still experienced by many.

(Photo courtesy of Public Information Office)

Strong December Jobs Report Looks Good, but Wages Fail to Keep Pace

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Job report is best in 15 years, but wages still lacking
The years 2008 and 2009 were characterized by loss: the loss of approximately 8.4 million jobs, the loss of consumer confidence in the markets, as well as steep declines in the values of homes. What did increase were the federal debt, inflation, and the numbers of personal bankruptcies filed by individuals. Eventually, the economic decline in world markets reached its bottommost level, and ‘loss’ in its many manifestations (i.e. job, home, savings) became the status quo.

Nearly five years later, however, economists have declared 2014 the best year since 2009. According to the Christian Science Monitor, 200,000 jobs were added each month during 2014 in what the Wall Street Journal called the “best year of job growth in 15 years.” Additionally, the New York Times reported that many of the recently created jobs are higher-paying opportunities in industries that have been especially aggressive in hiring, such as health care and construction work. Overall, between 2013 and 2014, the unemployment rate decreased over a full percentage point, to hold at 5.6 percent in December 2014.

Despite this good news, researchers have cautioned against reading the report through a rose-tinted lens. In particular, despite this year’s robust job growth, hourly earnings in December rose only 1.7 percent compared to this time last year, barely above inflation rates.

The result of this mathematics is firms are able to collect and protect their profits, while many U.S. households will be unable to increase their living standards. In fact, Federal Reserve officials have used this data to suggest that the economy is “far from its full capacity,” though the dollar has been at its highest point in years, another sign of economic improvements. As Elise Gould tells SF Gate, “…we are still digging our way out of the recession, and wage growth remains stagnant and untouched by recovery.”

But 2014 is gone and some analysts believe that 2015 will be “the year of the consumer,” given declining oil prices and the lower costs for imported goods. In fact, an economist questioned by SF Gate likened the lower oil prices to a $1000 pay raise, if prices remain low. Additionally, Mark Znadi, chief economist at Moody’s Analytics, told the New York Times that as the economy heads toward a 5 percent unemployment rate, wage growth is also expected to increase.

Millions of Americans, however, are still searching for full-time employment, while others have dropped out of the labor force altogether. As Dan Greenhaus, chief strategist at the brokerage firm BTIG told WSJ, “The simple fact is we cannot consider an employment report a success…if wage data does not begin to accelerate” as well as the number of Americans with work.

(Photo courtesy of Tess Aquarium)

S&P 500 Ends Week at Another Record High with Gains for Fifth Week in a Row

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The S&P 500 ends week at another record high
It was another good week for stocks with the Standard and Poors 500 (S&P 500) closing at its highest level ever once again. The rise was spurred by a jobs report which came in weaker that most analysts anticipated. This news was taken by investors as indicating the Federal Reserve will hold off on raising interest rates for the foreseeable future to continue to help the economy. The weak jobs report gives ammunition to those who say the economy is still struggling and interest rates should remain low to help it.


The S&P 500 was up 10.06 points (0.5%) for the day ending up above the 2,000 mark again, at 2,007.71. This was a 0.2% gain for the week. The 2,000 point level, while not having any significant economic meaning for the index, continues to have a strong psychological meaning to many traders. The S&P 500 is still struggling to maintain closings above this level on a daily basis, but it may be able to do so in the weeks to come as it continues to slowly end each week a bit higher than the previous week. This is the fifth week in a row the S&P 500 has managed to end higher than the week before.

The Dow Jones industrial average ended the day up 67.78 (0.4%) points to 17,137.36, and managed a 0.2% gain for the week. The Dow helped to solidify its position above the 17,000 mark this week and looks like it should maintain this level in the weeks to come, baring any unexpected geopolitical unrest which spooks investors.

The Nasdaq Composite increased in value by 20.61 points (0.45%) on Friday to 4.582.90, an increase of 0.06% for the week. While the Nasdaq continues to remain well below its all-time high during the dot com bubble, it continues to inch its way back toward the 5,000 mark ,week by week.

Utilities had a good day with a 1.2% gain as investors found them appealing after payroll release numbers had bond yields falling. Utilities, with their strong dividends, are a place of refuge for many investors when bond yields fall.

Apple ended Friday up 0.9% to $98.97. After breaking $100 a share, the stock has been unable to remain above that mark. Rumors continue to abound about what will be announced at their much anticipated September 9 news conference and if the new products can meet investors’ expectations. The stock was also hit when their iCloud was rumored to be part of the issue on how the celebrity nude photos ended up being hacked, although they have denied there was a breach in this area. They have also announced they plan to add new iCloud security features.

Family Dollar Stores decreased 1.2% to $79.11 after rejecting a new and sweeter offer from Dollar General in the battle between dollar stores. The rejection also hurt Dollar General shares which fell 2.3% to $63.01.

(Photo courtesy of ilaria)