Employment: Unemployment Rate Jumps
Employment: Unemployment Rate Jumps
Jobs fell 49,000 in May after a decline of a revised 28,000 in April but the big surprise was the jump in the unemployment rate, the largest monthly up-tic since February 1986 (college students?). Private sector jobs declined with continued, significant losses in manufacturing, construction and retail. Fed on hold in June.
Employment: Private Sector Job Losses Continue
Job losses in the private sector have been very sharp over the last five months and suggest weaker production and personal income growth ahead.By sector, manufacturing, construction and retail trade were weak. The breadth of job losses is reflected in the diffusion index which remains below the 50 break even level.
Wages Slow, Unemployment Spikes
Hourly earnings growth continues to remain elevated at 3.5 percent, but is clearly slowing. This combination suggests weak income and consumer spending growth going forward.Teenage unemployment spiked, suggesting young adults are unsuccessfully searching for jobs earlier than usual.Fed to stay on hold through June meeting.
Wachovia Corporation
http://www.wachovia.com
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