The February "Jobs Report" showed the the U.S. economy produced more jobs than expected, and the stock market tanked. Yesterday, the March report again showed the U.S. economy produced more jobs than expected, and the stock market soared. Why the different reactions to the same report?
The February report showed that average hourly earnings were up 2.9% over the same month last year. This suggested inflation was breaking out, which inevitably leads the Fed to increase interest rates more quickly. The March report reported that figure was only up 2.6% year-over-year, reducing the pressure on the Fed to increase interest rates.
Another question is how did we produce 313 thousand new jobs last month without the rate of unemployment changing from 4.1%. You would expect that rate to drop, wouldn't you? The good news is that almost 800 thousand people returned to the workforce. That is really good news!
Republicans focus on the Labor Force Participation Rate (LFPR), which measures the percentage of the population that either has a job or is looking for a job. It has risen to 63%, which is the highest since the global financial crisis of 2008/9, and Wall Street is heavily Republican.
Let's see -- fewer interest rate increases to dampen profits, plus a booming economy, plus rising corporate earnings, plus a highly stimulative fiscal policy, plus "peace talks" breaking out -- why wouldn't the stock market soar?
The February report showed that average hourly earnings were up 2.9% over the same month last year. This suggested inflation was breaking out, which inevitably leads the Fed to increase interest rates more quickly. The March report reported that figure was only up 2.6% year-over-year, reducing the pressure on the Fed to increase interest rates.
Another question is how did we produce 313 thousand new jobs last month without the rate of unemployment changing from 4.1%. You would expect that rate to drop, wouldn't you? The good news is that almost 800 thousand people returned to the workforce. That is really good news!
Republicans focus on the Labor Force Participation Rate (LFPR), which measures the percentage of the population that either has a job or is looking for a job. It has risen to 63%, which is the highest since the global financial crisis of 2008/9, and Wall Street is heavily Republican.
Let's see -- fewer interest rate increases to dampen profits, plus a booming economy, plus rising corporate earnings, plus a highly stimulative fiscal policy, plus "peace talks" breaking out -- why wouldn't the stock market soar?
