The Jobs Report
by Tom on June 5, 2009
in Market Musings, Market Report, Mortgage Rate Updates
I’ll have more on the jobs report and the market reactions as the day goes on, but a couple of quick thoughts:
- It seems somewhat inconsistent that the number of jobs lost was down but unemployment was up. The bond market doesn’t like inconsistencies, so I don’t expect this will be good for mortgage rates.
- The market had expected the number at around 500,000 so the 345,000 number, if accurate, is a sign that the economy is getting less bad. That’s good, except good economic news brings the potential for inflation nearer. That’s bad.
Stay tuned as the day progresses.
Tom Vanderwell
Job Losses at 345,000, Less Than Forecast; 9.4% Rate – Economy * US * News * Story – CNBC.com
U.S. employers cut 345,000 jobs last month, the fewest since September and far less than forecast, according to a government report on Friday that was more evidence the economy’s severe weakness was diminishing.laid off
However, the Labor Department said the unemployment rate raced to 9.4 percent, the highest since a matching rate in July 1983, from 8.9 percent in April.
