Not buying a Weak Employment Report –

The first Friday of each month marks a major employment report release for the prior month. Last Friday, June 3rd the May report was released.

We do not buy it’s accuracy! We are not shouting fraud or conspiracy, only the numbers just do not add up.

Wages Good

May 2016 US -average-hourly-earnings

Actual Unemployment Rate well below 5%

 

May 2016 US-unemployment-rate

This is one nice trend… 4.7% unemployment rate is nice.

Here is the zinger-  38k hired versus 164k expected

 

May 2016 us-non-farm-payrolls- trading economics

Way over to the right, that little bar of 38k represents the number of folks hired in May of 2016. The expectations were for 164k.

Nah, sample was off … we think it is highly likely this will be revised.

Bond market sure thinks it was real, based on the drop in the 10 year yield…. We rarely question the bond market, but we are this time.

6-2-16 10 year treasury yield

Have a great day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
www.jkfinancialinc.com
www.street-cents.com

 

 

 

2 responses to “Not buying a Weak Employment Report –

  1. Pingback: Confirmation … Last Payroll Report was bad | $treet-¢ents

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