Employment Numbers Belie Economic Slump

When more and more people are thrown out of work, unemployment results. – Calvin Coolidge

The latest employment numbers released last week by the BLS shows total private employment dropping below the January 2007 levels.  Employment is a major indicator of economic health.

I would like to acknowledge that there is skepticism of all government data.  But no matter the source, the answer is the same – we are back to January 2007 employment levels.  Since 1970, the private sector’s employment growth has averaged 0.2% per month. This current decline in employment numbers has now lasted eight months, and its effects can no longer be considered transitory. 

Historically, I cannot build a comparison between the employment situation today and the market’s behavior.  The market does what the market does.  But if the market prices in future growth, is the current market priced for negative growth?

Total employment is trending down and any person who made it through ECON 101 will tell you employment levels have a multiplier effect on employment itself and the economic engine as a whole. 

Disclosures: None.

Comments

[john s. gordon:]

government statistics are meaningless because persons who have given up looking for work because no work is available are not defined as 'unemployed'.
> jack

2008 Sep 08 08:27 AM