Surprisingly Weak Hiring In December Puzzles Economists, 'Flies In The Face' Of Other Data

[Purveyor]

WASHINGTON — It came as a shock: U.S. employers added just 74,000 jobs in December, far fewer than anyone expected. This from an economy that had been adding nearly three times as many for four straight months — a key reason the Federal Reserve decided last month to slow its economic stimulus.

So what happened in December? Economists struggled for explanations: Unusually cold weather. A statistical quirk. A temporary halt in steady job growth.

Blurring the picture, a wave of Americans stopped looking for work, meaning they were no longer counted as unemployed. Their exodus cut the unemployment rate from 7 percent to 6.7 percent — its lowest point in more than five years.

Friday's weak report from the Labor Department was particularly surprising because it followed a flurry of data that had pointed to a robust economy: U.S. companies are selling record levels of goods overseas. Americans are spending more on big purchases like cars and appliances. Layoffs have dwindled. Consumer confidence is up and debt levels are down. Builders broke ground in November on the most new homes in five years.

"The disappointing jobs report flies in the face of most recent economic data, which are pointing to a pretty strong fourth quarter," said Sal Guatieri, an economist at BMO Capital Markets.

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http://www.startribune.com/lifestyle/239600211.html

[El_Johns]

1. "the Federal Reserve decided last month to slow its economic stimulus"

[laundry_queen]

3. No kidding. Duh to them. It's pretty clear to me. nt

[dsc]

12. that isn't the case as they made the decision after december

and won't start the slowing for another month or two.

[El_Johns]

13. expectations

[dsc]

15. the decision wasn't made until january

[El_Johns]

16. The article says otherwise.

[dsc]

17. you're right

it was dec 17th. over half the month was over and it was by far the most important half, who hires during chirstmas week.

[El_Johns]

24. The decision wasn't officially announced until then. It was undoubtably made earlier, discussed

earlier, & large corporations knew earlier.

[Demo_Chris]

18. Hiring isn't done to meet trickle down expectations. nt

[El_Johns]

23. Oh, but it is.

[DJ13]

2. They BS'ed about the health of the economy so long that they started believing their own lies?

[TheKentuckian]

5. All smoke and mirrors and hocus pocus anyway

We've had precious few months where jobs created keep pace with the population growth but yet we are supposed to believe unemployment is improving and when asked how we are consistently told wave after wave of folks just drop out and when the "how" is asked testy, incoherent rambling ensues which seems quite feeble in light of ever increasing disparity, flooded charity, tattered and shrinking safety nets, massive wealth hit in property losses, and costs for rent, food, and utilities.

We are supposed to buy that every month all these folks no longer need their incomes in this country. That shit is delusional, we are a country lying to ourselves for a variety of reasons. Politics, being greedy, profits, ideology, blind optimism, whistling past the graveyard, misplaced loyalty, lack of empathy but nothing that reasonably jibes with reality In the present day.

[Demit]

10. Excellent rant.

[Demo_Chris]

19. Well said. Maybe Obama can give the wealthy another tax cut...

Pretty sure that will do it.

In any case, the great news is that cutting these endless unemployment extensions should evict tons of 'freeloaders' off the unemployment rolls. I anticipate the official unemployment numbers going down faster than Debby from Dallas. Homeless numbers will explode, but no one wastes their time counting those people anyway. It's win-win for everyone!

Or everyone who matters anyway.

[OKNancy]

4. The figures will be revised upward.

Economists on the right and left were saying this yesterday.

[Demo_Chris]

21. Economics is NOT A SCIENCE...

It's hardly even educated guesswork. Science proposes theories, tests them, and corrects the theories -- it is falsifiable. Economics is apparently incapable of testing theories, and it certainly is never adjusted based on observation. It's religion.

[onethatcares]

6. jeeez, 74,000 jobs in a

nation of 350,000,000 people.

that's worse than obscene. Maybe things will pick up after the TPP is fast tracked and passed.

[pipoman]

7. You forgot the sarcasm tag..

unless of course you have drunk of the free trade kool-aid.

[onethatcares]

9. my mistake,

on leaving off the tag.

Thanks.

[pipoman]

8. The nation only needs so many pizza delivery drivers. .

[Brigid]

14. And we have our thread winner.

The quality of the jobs bring created has been abysmal.

[quaker bill]

11. Statistical outliers happen

I do not need federal numbers. I can just drive around and see all the new projects under construction.

[Demo_Chris]

20. Not in Q4 they don't. nt

[TheKentuckian]

22. Bill, those projects don't balance the constant flow of people out of the job market

consistently used to justify the numbers.

What you are seeing is a statistically minor segment of the few anemic jobs we are creating, with a consensus accept ancestors that most are low wage service jobs. This is not disputed by the sunniest optimist, unless you are going to stake out that forward position now.

[spanone]

25. i saw a guy from moody's on m$nbc who said the report showed even delivery services were down

ala fed-ex & ups...he said it made no sensse.



curious

[democratisphere]

26. The economy is nothing like it is being advertised or fabricated.

[reformist2]

27. The "economy" is just fine - it just doesn't need new workers anymore.

[Egalitarian Thug]

28. Economist, Meteorologist, and Politician are the only three jobs in the world

where you can be wrong almost every time and still have people listen to you and still collect a check.

[MannyGoldstein]

29. I can haz green shootz? nt