|
Jobs — Everybody knows that a job ain’t nothin’ but work. But hey, gotta put food on the table somehow. So instead of degenerately gambling on three or four-letter symbols from their parent’s basements for 8 hours a day like we apes do, 431,000 Americans decided to get a job last month.
And while 431,000 is a decent number for sure, economists were naturally way off in their predictions. As pointing and laughing at how wrong the “experts” are is the best part of any economic release, let’s see just how off the overlords were.
This time, the geniuses driving economic policy put their guesses at 490k jobs added. But the best part is how wrong they were in the actual report of February’s job gains, having to revise the figures upward by over 10% to 750k. Damn, counting is hard.
In all seriousness, March’s employment report proved strong enough to make the market happy. Those 431k jobs added translates to an unemployment rate of 3.6%, just 0.1% above pre-pandemic levels in February 2020. At the same time, the total size of the labor force grew by 418k, now just 174k workers below pre-pandemic levels.
All signs point to a labor market that’s stronger than Everclear. You wouldn’t know it from the recent headlines, but much of the U.S. economy is looking like a snack. So, the combination of strong growth this month, upward revisions to previous months, falling unemployment, growing labor force, and a whole lot more can only mean one thing: rates are definitely gonna moon.
And traders seem to have already caught onto this, obviously. Short-term Treasury yields saw huge jumps, leading to even more flattening of the yield curve and, once again, an inversion of the 2- and 10-year spread. Meanwhile, the dollar gained sharply for the same reasons.
Remember, the Fed attempts to balance inflation and unemployment. So the strength of the labor market gives Daddy JPow all the room he needs to raise rates through the ceiling this year.
We’ll see how markets react now that they’ve had a few days to reflect on their reflections. Inflation, supply chain shitshows, and Vladdy P might just have to come in and shake things up.
 |
Temporibus aut error dolor in. Et qui repudiandae nostrum recusandae magni.
Blanditiis quia quo autem doloribus a similique magni. Eum praesentium aspernatur aut eaque. Et quod tenetur sapiente quae dolores sunt itaque voluptates.
Id magnam esse ea aperiam id et aut quia. Ab est et non voluptas voluptatibus. Libero tempore voluptas omnis enim qui. Consequatur ut vero sed placeat pariatur dolorum temporibus sunt. Laboriosam impedit itaque neque dolores velit unde. Pariatur minima eum aut et corrupti iste.
Nisi dolor sint quis aut sit. Totam enim est cupiditate est et sed. Totam debitis recusandae veritatis vel. Eius at nesciunt inventore odio. Illo ratione in sit asperiores illo. Magnam magni quia aut veniam nihil voluptatem.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...