Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       
 
 

Blog Home
   Brian Wesbury
Chief Economist
 
Bio
X •  LinkedIn
   Bob Stein
Deputy Chief Economist
Bio
X •  LinkedIn
 
  July payrolls down 131,000
Supporting Image for Blog Post

 
Implications:  If you're an unemployed worker (or working "under the table") and looking for a formal job, today's report was a disappointment, with payrolls growing less than the consensus expected in the private sector and shrinking more than expected in the government sector.  However, for those who are already employed, today's report was strong.  Again, not mediocre, actually strong.  Goods-producing industries have pushed their workweek back to pre-recession levels – meaning further production gains will translate into more employment.  Meanwhile, average hourly earnings increased 0.2%.  We can use data on total hours and hourly earnings to figure out total earnings, which increased at a 6.2% annual rate in July and are up at a 4.1% annual rate in the past nine months.  This is more than enough for workers to both increase consumption and, if they want, increase their saving.  Although the size of the labor force (workers and those who say they're looking for work) remains stagnant, at levels first reached in early 2008, this may be related to a drop in the number of illegal immigrants, many of whom worked in residential construction, one of the sectors hit the hardest in the recession.  So far this year, private payrolls are up 90,000 per month while civilian employment – minus the government sector – is up 200,000 per month. 

In other recent news, new claims for unemployment insurance increased 19,000 last week to 479,000.  Continuing claims for regular state benefits rose 49,000 to 4.59 million.  Claims data should become much less volatile in August, as seasonal adjustments for annual auto layoffs are left behind.

Click here to view the entire report.
Posted on Friday, August 6, 2010 @ 9:49 AM • Post Link Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
Search Posts
 PREVIOUS POSTS
The ISM Non-Manufacturing composite index rose to 54.3 in July
Personal income and consumption were both unchanged in June
The ISM Manufacturing index fell to a still strong 55.5
GDP Data - Better than the Spin Suggests
The first estimate for Q2 real GDP growth is 2.4% at an annual rate
New orders for durable goods declined 1.0% in June
The Good, Bad and Ugly of Austerity
New single-family home sales increased 23.6% in June to a 330,000 annual rate
Waving the White Flag on Tax Hikes
Existing home sales fell 5.1% in June
Archive
Skip Navigation Links.
Expand 20242024
Expand 20232023
Expand 20222022
Expand 20212021
Expand 20202020
Expand 20192019
Expand 20182018
Expand 20172017
Expand 20162016
Expand 20152015
Expand 20142014
Expand 20132013
Expand 20122012
Expand 20112011
Expand 20102010

Search by Topic
Skip Navigation Links.

 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
Follow First Trust:  
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2024 All rights reserved.