US Unembployment hits 9.4%

inspector_monkfish

13:32 05Jun09 US May payrolls fall 345,000, jobless rate 9.4 pct

WASHINGTON, June 5 - U.S. employers cut 345,000 jobs last month, the fewest since September and far less than forecast, according to a government report on Friday that was more evidence the economy's severe weakness was diminishing.

However, the Labor Department said the unemployment rate raced to 9.4 percent, the highest since a matching rate in July 1983, from 8.9 percent in April.

March and April's job losses were revised down to show a smaller declines of 652,000 and 504,000, respectively.

Analysts polled by Reuters had forecast non-farm payrolls dropping 520,000 in May. The unemployment rate had been forecast to rise to 9.2 percent.

While the job losses in May were spread across almost all sectors, the pace of layoffs was slower than in prior months.

Payrolls in construction industries fell 59,000 after dropping 108,000 in April, likely as a result of the government's historic $787 billion stimulus package.

The service-providing industry shed 120,000 positions after eliminating 230,000 in April. The manufacturing sector purged 156,000 jobs in May, likely reflecting auto plant shutdowns in the wake of Chrysler's bankruptcy filing. The sector shed 154,000 in April.

Education and health services sector payrolls expanded by 44,000 after increasing 13,000 the prior month. Government, which in April added 92,000 jobs, mostly related to preparations for the 2010 census, cut 7,000 positions in May.

Since the start of the recession in December 2007, the economy has lost 6.0 million jobs, the department said.

inspector_monkfish

unembloyment!! :rotfl:

oops, my bad !!

Generali

The US Government "stress tests" on US banks assumed a worst case scenario of US unemployment at 10%. As unemployment is a 'lagging indicator' it's a fair assumption that it'll continue to rise for a year or so after GDP growth turns positive.

BoA going back for more money?

inspector_monkfish

Generali wrote: »

BoA going back for more money?

not heard anything today

purch

BoA going back for more money?

There's a ticking 'timebomb' out there somewhere.....apparantly.

The reduction of the pace in the drops in Non-Farm Payrolls is encouraging on the face of it, but with the un-reliability of this number to be correct on first or even second release, the news could easily turn out to be a lot worse than it appears.

The Un-employment rate is still rising at an alarming rate, which doesn't tie in with the payrolls data, and I think the explanation given (more people joining the labour force to look for work) is weak.

It looks like they are trying to spin these numbers as positive, which is stretching the imagaination a little.

inspector_monkfish

purch wrote: »

There's a ticking 'timebomb' out there somewhere.....apparantly.

The reduction of the pace in the drops in Non-Farm Payrolls is encouraging on the face of it, but with the un-reliability of this number to be correct on first or even second release, the news could easily turn out to be a lot worse than it appears.

The Un-employment rate is still rising at an alarming rate, which doesn't tie in with the payrolls data, and I think the explanation given (more people joining the labour force to look for work) is weak.

It looks like they are trying to spin these numbers as positive, which is stretching the imagaination a little.

well it hasn't helped the Pound....
cable was 1.62 when announced
its 1.6050 now :eek:

inspector_monkfish

14:02 05Jun09 GBP/USD: Tumbles on Deeper Look at US Employment Report

[13:02 GBP/USD: Tumbles on Deeper Look at US Employment Report] London, June 5.

Cable has slumped by two cents from a post-US employment report release high of 1.6245 as the focus switches from the much better-than-expected NFP number to the larger-than-expected rise in the US unemployment rate and breakdown inputs.

Average weekly hours worked fell to 33.1 in May, from 33.2 in April.

1.6017 was the intra-week low plumbed during the European morning. An option
barrier is tipped at 1.6000.

StevieJ

Stock markets like those figures.

inspector_monkfish

StevieJ wrote: »

Stock markets like those figures.

DJIA is up 1pct in first 5mins

inspector_monkfish

inspector_monkfish wrote: »

DJIA is up 1pct in first 5mins

Dow negative now

inspector_monkfish

15:19 05Jun09 GBP/USD: Sub-1.6000 Sell Stops Tripped, More Under 1.5950

[14:19 GBP/USD: Sub-1.6000 Sell Stops Tripped, More Under 1.5950] London, June 5.
Cable fell to a fresh intra-week low nine pips shy of 1.5950 after tripping sell stops below 1.6000. Further sell stops reportedly reside below 1.5950, with buy interest tipped into that level.

There is mutter that May"s Non-Farm Payroll number should have been closer ton minus 565k than its actual minus 345k re: BLS births/deaths assumptions. GBP/USD leapt to an intra-day peak of 1.6245 in a knee-jerk reaction to May"s forecast-busting NFP number.