The most recent job creation data from ADP was a total head-fake. The Labor Department has just released its June unemployment and jobs data, and it is dismal. The June unemployment rate has just ticked up to 9.2% from 9.1% in May and the payrolls creation was a mere 18,000.
Consensus estimates were 9.1% for unemployment and the payrolls projections were above 100,000 since the ADP payrolls data came out this week. Dow Jones was at 125,000 in payrolls, and Bloomberg’s reading yesterday was 110,000. Apparently this leaves more than 14 million Americans on the sidelines.
To make matters worse, the payrolls data for the prior two months were revised lower by 44,000.
The private sector actually added 57,000 jobs in June, lower than the 73,000 reported in May. Manufacturing, as well as professional and business services, added small gains; the government jobs lost 39,000 positions.
Today’s data is taking the wind out of the fresh market gains with S&P futures down more than 1% and DJIA futures down by triple-digits.
Don’t we need higher taxes on top of all this great news?
JON C. OGG
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