Wednesday, March 09, 2005

Bullish Employment Report?

Barry Ritholtz over at The Big Picture drilled a little deeper into the employment report and wan't as impressed as the market.

"Drilling beneath the headlines, the report was far less bullish. We note 3 specific issues:

· The unemployment rate ticked up, from 5.2 to 5.4%;

· Average hourly wages were unchanged;

· Long-term unemployed (27 weeks+) remained at 1.6m;

· Persons holding more than one job increased by 432,000 to 7.7 million, 5.5% of total employment. That’s up from 5.3% a year earlier.

These suggest to us that the labor market still has plenty of slack left in it. Unlike the commodity markets, we see little inflationary pressures in the labor market: no wage pressures, long-term unemployment, and an increasing number of multiple jobholders. "

Maybe this is why the market has been fading lately?

Best Regards,

The Soothsayer of Omaha

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