Skip to Content
Investing Specialists

Labor Report Lays an Egg

Before everyone jumps off a bridge, employment did actually register an increase.

Mentioned: ,

While there was a lot of good news this week, a lousy employment report overshadowed every other piece of data. Unfortunately, the potential for a strong employment rate was well hyped before the announcement, so the setback was doubly disappointing to the market on Friday when reality couldn't match the hype.

The market will probably take some time to grieve over the numbers. However, the jobs report is a highly volatile series subject to large swings and sometimes revisions. A lot of other employment reports, including the employment sections of the ISM purchasing managers' report, the Monster Index of online employment, and the Challenger, Gray & Christmas layoffs report, all paint a somewhat brighter picture of employment.

Before everyone jumps off a bridge, employment did actually register an increase. Furthermore, other sections of the report including wages and hours showed pretty dramatic improvement. News was still good this week out of the manufacturing sector, while same-store retail reports were mildly disappointing.

Robert Johnson, CFA does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.