"Economists React: Employment Report ‘Almost Indescribably Terrible’
Economists and others weigh in on the substantially worse-than-expected decline in nonfarm payrolls, and the increase in the unemployment rate.
# This is almost indescribably terrible. In the past six months the U.S. has lost 1.55 million jobs, almost as many as were lost in the whole 2001 recession, which included 9/11 and the two months after. The pace of job losses is accelerating alarmingly, as this report attests, with steep drops in most sectors but the biggest deterioration in services — down 370,000 in November after 153,000 in October. Note education/health and governmentt added 59,000, so core private payrolls even worse than headline. Desperate. –Ian Shepherdson, High Frequency Economics
# Quite simply, there was nothing good in this report. Even though some might take comfort in the relatively modest uptick in the jobless rate (from 6.5% to 6.7%), this is actually quite misleading. In fact, the household survey’s measure of employment came in at -673,000, an even sharper plunge than seen in the payroll figures. The jobless rate was actually restrained by a large decline in the labor force — as we had suspected… It is worth noting that the November payroll figures would have been even worse were it not for a special factor. We estimate that the direct and indirect effects of the resolution of the Boeing strike probably added about 35,000 employees to manufacturing payrolls in November. –David Greenlaw, Morgan Stanley..."
wsj
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IIRC the estimates were in the 350K range. This is insane. |
