· Non-farm payrolls came in at 74k, with 197k expected. However, last month was revised from 203k to 241k.
· Unemployment rate improved to 6.7% from 7.0%.
o However, the participation rate fell back down to 62.8%, which is a 36yr low.
o 347,000 people left the labor force. We have no idea why, but that’s what caused participation to fall, and unemployment rate to improve.
o So make no mistake, this will NOT meet the Fed’s “qualitative” component of improving employment.
· Average weekly hours worked fell back to 34.4 hours from 34.5.
· With all that said, several “experts” on CNBC said we should just ignore these numbers. They aren’t right and they’ll all be revised better next month.
o Which makes me ask, then why don’t we JUST report revised numbers and ignore the current numbers?...by the rational!
Reaction my markets. Bonds immediately traded higher, but so did stocks because it will be assumed that this “may” cause the Fed to pause their tapering. Because central bank money creation will solve everything.
Randy Woodward
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