US Jobs Numbers BAD – its time for the Bazooka from the Feds

Posted July 06, 2012 12:51 (GMT) | By FX Empire Analyst - Barry Norman | Print | Font Size
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Economic News

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The US Nonfarm Payroll surprised markets and disappointed economists.

The final report gave the following information:

Nonfarm Payrolls	Actual 80K	Estimate 90K	Prior 77K
Unemployment Rate	8.2%	8.2%	8.2%
Average Weekly Hours	34.5	34.4	34.4
Private Nonfarm Payrolls	84K	102K	105K

There was not one bit of positive data in the report, no silver lining unless one would say that the unemployment rate did not climb again this month, or weekly average hours remained close to the same, when the average work week in the US is 37.5, this number says that most people are working complete weeks.

Private payrolls, which are small business, large and medium size businesses combined, but America can usually rely on small private businesses to hire faster then the larger business, but when small business are not hiring, that means that small business are continuing to suffer.

In the US, the economy has to react over 200k jobs per month just to keep numbers positive and at this rate we continue to lose jobs.

If one were to look deep to find a bright light or a silver lining, we could then look to the Federal Reserve where Ben Bernanke has promised to pull out the big guns if the economy needs a boost.

With these numbers and a month of lackluster eco data, the economy needs a big boost and so does President Obama, as elections grow near, if he can not fix or show improvement to the economy, his time in office is very limited. Elections are scheduled for November 2012.

With these numbers it will be bye bye Obama.

Watch and listen carefully for Ben Bernanke, we should be hearing from the Fed’s early next week.

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About: FX Empire Analyst - Barry Norman

Barry produces a private Daily Market Review newsletter that is distributed around the globe to over 25,000 subscribers and recently published a book on Options Trading that is available from amazon.com

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