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Yawn of an Employment Report? Think Again
April 07, 2014 at 19:00 PM EDT
Most of the narrative surrounding the latest jobs report has been that the number was mildly disappointing, but nothing extraordinary. That may be right, but it’s missing the point—there is something extraordinary here: we are still seeing such anemic job growth despite GDP growth that is expected to improve, excess corporate cash and a significant need for corporations to invest. The March employment number reflects the usual rate of hiring during expansionary periods for the past 25 years, of about 200,000 jobs a month. But this number doesn’t account for population growth, strongly suggesting that job growth is far below where it should be. There are two distinct but closely related problems. First, the benefits of Fed policy have reached their limits. Although quantitative easing is riding into the sunset, it overstayed its welcome and has distorted asset prices and capital allocation decisions profoundly. Companies may be sitting on a [...] Click here to read the original article on ETFdb.com. Related Posts: No Related Posts
Most of the narrative surrounding the latest jobs report has been that the number was mildly disappointing, but nothing extraordinary. That may be right, but it’s missing the point—there is something extraordinary here: we are still seeing such anemic job growth despite GDP growth that is expected to improve, excess corporate cash and a significant need for corporations to invest. The March employment number reflects the usual rate of hiring during expansionary periods for the past 25 years, of about 200,000 jobs a month. But this number doesn’t account for population growth, strongly suggesting that job growth is far below where it should be. There are two distinct but closely related problems. First, the benefits of Fed policy have reached their limits. Although quantitative easing is riding into the sunset, it overstayed its welcome and has distorted asset prices and capital allocation decisions profoundly. Companies may be sitting on a [...]
