I was listening to Bloomberg this morning in the car and this kind of number was certainly not on the table for the economists and money managers they had on for the breakfast show. (At least the ones I heard.)
38,000 huh? And these numbers of late have been particularly subject to downward revision over time. This is a significant blow and may put a lot of the economic world back on the heightened state of alert we saw at the beginning of the year as stocks dipped seriously. A Fed hike looks less likely and the economic trend at this moment looks fairly sharply downward.
In February the official job creation number was 233,000, in March it was 186,000, in April 123,000, and now May at 38,000
That rate does not include those who did not actively look for employment during the month or the underemployed who were working part time for economic reasons. A more encompassing rate that includes those groups held steady at 9.7 percent.
Wall Street was looking for payroll growth of 162,000 and the unemployment rate holding steady at 5.0 percent.
“There’s one word for it, which is just shocking,” said Dan North, chief economist at Euler Hermes North America. “Unfortunately it does look like a trend. It’s not great news.”