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US Adds 280K Jobs In May, Much Higher Than Expected, Yellen Gets Green Light To Hike
Contrary to expectations of a modest 226K increase in nonfarm payrolls, according to the BLS in May the US added a whopping 280K jobs, with the April print revised from 223K to 221K, but March revised higher from 85K to 119K. This was the highest monthly increase in payrolls since December of 2014. The unemployment rate rose from 5.4% to 5.5% on the number, as the number of employed Americans according to the Household Survey also rose by an almost equal 272K.
But while the strong number will surely grab Yellen's attention, what is most notable is the jump in average hourly earnings, which rose by 0.3%, above the 0.2% expected, and well above the 0.1% in April, suggesting the slack in the labor force is indeed evaporating. Another way of showing the wage growth, is that it rose 2.3% in May from a year ago, which was the highest annual increase since 2009!
Another way of seeing the wage growth is comparing it to the civilian employment-to-population rate, traditionally the best correlation, which rose from 59.3% to 59.4%, while wages grew by 2.3% in May, the biggest annual increase since 2009.
Judging by the kneejerk market reaction, the data is strong enough to give Yellen a green light not only for a September rate hike, but even potentially keeps June in play.
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More details from the report:
Total nonfarm payroll employment rose by 280,000 in May, compared with an average monthly gain of 251,000 over the prior 12 months. In May, job gains occurred in professional and business services, leisure and hospitality, and health care. Employment in mining continued to decline. (See table B-1.)
Professional and business services added 63,000 jobs in May and 671,000 jobs over the year. In May, employment increased in computer systems design and related services (+10,000). Employment continued to trend up in temporary help services (+20,000), in management and technical consulting services (+7,000), and in architectural and engineering services (+5,000).
Employment in leisure and hospitality increased by 57,000 in May, following little change in the prior 2 months. In May, employment edged up in arts, entertainment, and recreation (+29,000). Employment in food services and drinking places has shown little net change over the past 3 months.
Health care added 47,000 jobs in May. Within the industry, employment in ambulatory care services (which includes home health care services and outpatient care centers) rose by 28,000. Hospitals added 16,000 jobs over the month. Over the past year, health care has added 408,000 jobs.
Employment in retail trade edged up in May (+31,000). Over the prior 12 months, the industry had added an average of 24,000 jobs per month. Within retail trade, automobile dealers added 8,000 jobs in May.
Construction employment continued to trend up over the month (+17,000) and has increased by 273,000 over the past year.
In May, employment continued on an upward trend in transportation and warehousing (+13,000). Truck transportation added 9,000 jobs over the month.
In May, employment continued to trend up in financial activities (+13,000). Over the past 12 months, the industry has added 160,000 jobs, with about half of the gain in insurance carriers and related activities.
Employment in mining fell for the fifth month in a row, with a decline of 17,000 in May. The loss was in support activities for mining. Employment in mining has decreased by 68,000 thus far this year, after increasing by 41,000 in 2014.
Employment in other major industries, including manufacturing, wholesale trade, information, and government, showed little change over the month.
The average workweek for all employees on private nonfarm payrolls remained at 34.5 hours in May. The manufacturing workweek was unchanged at 40.7 hours, and factory overtime remained at 3.3 hours. The average workweek for production and nonsupervisory employees on private nonfarm payrolls edged up by 0.1 hour to 33.7 hours. (See tables B-2 and B-7.)
In May, average hourly earnings for all employees on private nonfarm payrolls rose by 8 cents to $24.96. Over the year, average hourly earnings have risen by 2.3 percent. Average hourly earnings of private- sector production and nonsupervisory employees rose by 6 cents to $20.97 in May. (See tables B-3 and B-8.)
The change in total nonfarm payroll employment for March was revised from +85,000 to +119,000, and the change for April was revised from +223,000 to +221,000. With these revisions, employment gains in March and April combined were 32,000 more than previously reported. Over the past 3 months, job gains have averaged 207,000 per month.
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as everyone else is saying it is not "meshing" with consumer spending
Rate hikes will only happen if the dollar falls in value and gets threatened. Until then, no rate jikes. MZM is off the charts. Money velocity is like 2.14 when it used to be 1.46.
We jobbed some folks...
With a credit money economy it is a given that there will be temporal issues. Time is part of credit money as credit fluxes in an accounting periodicity. For example, the housing bubble created a bubble which signaled to sheeple that all was well, but there was a hidden “time bomb” where futurity was taxed. Usury on the credit and unequal swaps, thus channeling the exchange medium toward rent-seekers is and was the time bomb.
The system hasn’t changed, and the defects are still present. The FED should not be in charge of the money supply. A central bank works for bankers, and usurps the political will of a nation.
This small increase in employment is NOT impressive, and worse no structural problems have been fixed, much less even analyzed.
Maybe we should listen to Schacht who not only understood money, but acted on his understanding to benefit his country. A quote about Schacht from Weber in 1948, not in the Hitler era:
“Nay, as an economist who has made a thorough study of the world's economic problems I find it incumbent upon me to state: in all the long years between the two world wars no one in any other part of the world carried out so constructive an economic policy as we did between 1933 and 1935'
Schacht fixed the hyperinflation, and then put millions (yes millions) to work in a short period of time.
Following are quotes from Schacht. This one shows he understands the temporal nature of credit vs money:
“To complicate matters, credit transactions, which are indispensable in trade and commerce, make it possible to confound present with future money. Borrowed money is never property, is never 'mine'; it belongs to others and is thus always 'yours'.”
To elaborate on borrowed money i.e. ‘credit”; you the borrower own the credit upon your signature, but the bank has been given “law” to hypothecate credit into existence. This credit makes demand for goods and services upon spending. This same credit fluxes in an accounting periodicity based on the loan, or debt instrument. Said credit fluxes in channels relating to debt instruments and not goods and service. Also, channeling can be against the better wishes of a nation/state, and hence this private “credit” creation will have negative ramifications, as in creating financial oligarchy.
Another quote:
“He who makes money also wishes to benefit from it: he is not concerned merely with creating for others, but also- and probably principally - with improving his own lot. Therefore the problem of the economically active society is not so much one of manipulating the means of production, but more one of distributing the social product.”
Financial Oligarchy distributes the unearned increment, or the means of production, into pyramiding debt instruments (called assets) and debt finance also tries to magickally swap debts for real assets. Rents, or stealing via prices via manipulations via usurious swaps, must be separated from real economic gains. Western and especially American silence is deafening on the amount of rent seeking and the outright stealing going on. I estimate this stealing, rent seeking, and losses at around 50% of the economy. Accountants are in on the game: gains and fake asset inflation is counted as GDP growth – stupid accounting or compromised accountants?
Below Schacht quote shows character of a real man, who fixed the hyperinflation and also put millions to work: By contrast, Federal Reserve Zionists have no feeling for their “cattle.” Scorn is the likely emotion as these private bankers are intently using rental parasitism to then fund/guide/usurp society toward Kabala. Any real sense of concern is only psychopathic pretense. If we brain-scanned these Zio’s, there is little doubt we would find most of them are psychos and megalomaniacs.
“I have a suggestion: if you grant Miss Steffeck (Schacht’s secretary) my salary, as well as that due to her, she will still have DM 6oo. I, for my part, will renounce my salary
“'Do you mean to say you will work for nothing' asked the Government official, disconcerted. On condition that you pay my secretary DM 600, yes.
Schacht also knew that money could be used to brainwash sheeple, to then make them slaves. The FED has a slush fund used for that purpose. The FED only rebates its profits to Treasury after they have taken out their “expenses,” and FED vehemently resists any audit of their books. This is the action of a criminal hiding predatory malfeasance.
“money triumphs and forces the free spirits into its service. A more appalling caricature of freedom of thought cannot be imagined. Formerly a man did not dare to think freely.
Now he dares, but cannot.”
The conditions that swept Hitler into power were populism, as a Leader who can fix underlying problems. The same conditions that existed in Weimar Germany now exist in the West – especially America:
“Hitler owes his rise and his ultimate triumph principally to the economic crisis, the despair of the unemployed proletariat, the academic youth deprived of their future, the middle-class businessmen and craftsmen threatened with bankruptcy, and the farmers brought to dire straits by the fall in agricultural prices. In this respect there can be no denying that we all failed. There is no doubt that we were right to blame capitalism for the crisis, but beyond that we were not in a position to offer the masses anything better than mere socialist cant.”
Fix “capital” and then maybe capitalism will work. Financial capitalist Zionists have no intention on fixing the nature of capital because they are stealing and taking rents for their own selfish reasons.
www.sovereignmoney.eu
The Fed has to raise rates. That way there is a scape goat for when the economy craters. The Fed is being set up to take the fall.
The Osha root is an herb that has been around for many years, having stood the test of time. Also called bear root, Osha is an herb from the parsley family, mainly used for medical and spiritual purposes.
http://www.doctorshealthpress.com/food-and-nutrition-articles/osha-root