Initial Glance – Jobs Report
by Tom on September 4, 2009
in Market Musings
Well, the jobs report has been out for a total of 15 minutes and here’s a first glance at it:
- Jobs lost were around what was expected. ONLY 216,000 jobs were eliminated. Not a market moving number.
- Unemployment went from 9.4% to 9.7%. That’s worse than expected and a 26 year high. Part of the reason it jumped .3% is because the labor force grew by 73,000. Why? My guess is that there were people who had given up who saw the improved reports and said, “Maybe I’ll try again to find a job.
It’s early to say for sure, but here’s my initial read on what this means for the mortgage market:
- I don’t see that any components of the report are “good” enough to be spun into a stock market rally that would be bad for mortgage rates.
- The report came in fairly close to what the market expected, so I don’t see a major move in the markets coming today.
But stay tuned. I’ll have more as time goes on.
Thanks!
Tom Vanderwell
Unemployment Jumps to 9.7%; Market Sheds 216,000 Jobs – Economy * US * News * Story – CNBC.com
U.S. employers cut a fewer-than-expected 216,000 jobs in August, while the unemployment rate rose to a 26-year high, the government said on Friday in a report showing a still fragile labor market.The Labor Department said the unemployment rate rose to 9.7 percent after dipping to 9.4 percent in July and the decline in payrolls was the smallest in a year. The department revised job losses for June and July to show 49,000 more jobs lost than previously reported.
Analysts had expected non-farm payrolls to drop 225,000 in August and the unemployment rate to rise to 9.5 percent.
The labor force increased by 73,000 in August, indicating the return of some jobless workers who had given up looking for work accounting for part of the rise in the unemployment rate.
