Email of the day (1)
Comment of the Day

July 08 2013

Commentary by David Fuller

Email of the day (1)

On last week's US jobs report
"On the face of it, as Bloomberg crowed, the job figures were quite good. But the reality (given by someone who has done some analysis) is that there was a loss of 240 000 full time jobs, a gain of 360 000 part time jobs and a gain of 77 000 low paying jobs - hardly the sign of a buoyant economy justifying any reduction in QE in the near future."

David Fuller's view Many thanks for conducting the analysis and enlightening us with your conclusion. All the more so because I confess to not having had time to assess the results over the weekend, due to some glorious sporting achievements for British fans.

However, I believe your assessment is also in line with some of the earlier developments regarding US employment data. Basically, as I see it: 1) The consequence of being only 5.5 years beyond the credit crisis recession, so growth has yet to recover fully; 2) Big businesses are not yet willing to increase manpower significantly, and small firms have trouble getting capital for expansion; 3) The accelerating rate of technological innovation is replacing both blue and white collar jobs more quickly than they can be replaced in other industries.

By coincidence, we also received this analysis from another subscriber: What the Worst Jobs Report of the Year Means to You.

My only word of caution, which I have mentioned on numerous occasions in recent years, is that I would not confuse slow growth economies with the strong corporate Autonomies that Fullermoney continues to favour, and which Eoin reviews on a frequent basis.

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