Thursday, July 11, 2019

Questions About The "Stellar" June Jobs Report

That outlook would seem to be askew of the recent employment report for June from the Bureau of Labor Statistics last week.

That report showed an increase in employment of 224,000 jobs.

Well, I have a few questions for you to ponder concerning to the latest employment report which may actually support the Fed's case for rate cuts.

These questions are also important to your investment outlook as there is a high correlation between employment, economic growth, and not surprisingly, corporate profitability.

The current annual rate of employment growth is 1.5%, which is lower than any previous employment level prior to a recession in history.

Question: If 1/3rd of the working-age population simply isn't counted, and the birth-death adjustment inflates the employment roles, just how accurate is the employment data?

"But there's even more cause for concern. Months from now, the Establishment Survey will undergo its annual retrospective benchmark revision, based almost entirely on the Quarterly Census of Employment and Wages conducted by the Labor Department. That's because the QCEW is not just a sample-based survey, but a census that counts jobs at every establishment, meaning that the data are definitive but take time to collect."

https://www.zerohedge.com/news/2019-07-11/questions-about-stellar-june-jobs-report-which-also-confirm-feds-concerns

No comments: