Job market – the empty half of the glass – risk aversion takes over
Posted 11-06-2009 at 09:23 AM by Yohay
American unemployment rate is now at double digits – 10.2%. Obama’s warning of a rate above 10% comes true. This worse-than-expected release, together with Non-Farm Payrolls triggers fear of a slow recovery for a very extended period – “Safe haven” dollar and yen make gains in a choppy market.
The Non-Farm Payrolls disappointed only marginally, and fell by 190,000 jobs, almost at the early expectations of 173,000. The unemployment rate made the big disappointment. by rising from 9,8 to 10.2%.
This big jump was significantly worse than the early expectations for a small rise to 9.9%.
The American job market is lagging behind other indicators. While third quarter GDP rose very nicely by 3.5% and exceeded expectations, the job market, as seen in today’s figures, as well as in the weekly unemployment claims, is far behind.
With yet another month of job losses, the growth figures fade away. Sustainable growth is impossible without an improvement in jobs.
Read the rest of the Non-Farm Payrolls effect.
The Non-Farm Payrolls disappointed only marginally, and fell by 190,000 jobs, almost at the early expectations of 173,000. The unemployment rate made the big disappointment. by rising from 9,8 to 10.2%.
This big jump was significantly worse than the early expectations for a small rise to 9.9%.
The American job market is lagging behind other indicators. While third quarter GDP rose very nicely by 3.5% and exceeded expectations, the job market, as seen in today’s figures, as well as in the weekly unemployment claims, is far behind.
With yet another month of job losses, the growth figures fade away. Sustainable growth is impossible without an improvement in jobs.
Read the rest of the Non-Farm Payrolls effect.
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