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  • Where Have All The Good Jobs Gone? By WSS Research Team 1 comment
    Jun 10, 2014 2:04 PM

    By Jennifer Coombs, Research Analyst

    Despite all major indices trading slightly lower during today's session, the market appears to be relatively calm. Thus far, there are no new all-time highs, but also, there is not any major economic news driving the market down. In fact, the majority of the data released this morning was quite positive for the most part.

    In support of the jobs report from Friday, the Labor Department's monthly Job Openings and Labor Turnover Survey (JOLTS) showed that there definitely is some modest improvement in the labor market. There were 4.455 million job openings on the last day of April, which was up huge from the 4.166 million job openings in March. Even more encouraging was the fact that nearly all of these job openings were in the private sector, while jobs in the public/government sector remained relatively the same from the previous month. The number of job openings increased nicely in the Midwest region. Arts and entertainment jobs also showed substantial increases in April. The hires rate (+3.4 %) and separations rate (+3.3%) were unchanged in April. Under the separations component, the quits rate (+1.8%) and the layoffs and discharges rate (+1.2%) were also unchanged in April. Ultimately, this shows that there is great improvement in the labor market, but it should not be enough to deter the Fed away from their current monetary policy. There are plenty of jobs popping up - whether or not they are good enough to be snatched up remains to be seen.

    Going along with the improvement in the jobs market was the improvement in the National Federation of Independent Business (NFIB) Small Business Optimism Index for the month of May. The index rose sharply for a second straight month, up 1.4 points to 96.6 - this is the best reading in the recovery since September 2007. Most economists expected the index to come in around 95.5, which was only slightly higher than the 95.2 reading from April. The biggest monthly gains occurred among those who expected the economy to improve following sales expectations. The following charts are directly from the NFIB and show that the current reading really is back to pre-recession levels.

    Additionally, the most encouraging part of the survey was that most small business owners expect that economy will improve going forward (+9 points from April), as well as expecting to see an improvement in real sales (+5 points over April).

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    Very informative. But yes, just because there are jobs doesn't necessarily mean they're good jobs.
    11 Jun 2014, 08:25 AM Reply Like
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