The numbers provided by ADP
On 6/5, ADP reported that businesses added a disappointed 135,000 jobs in May versus the estimated number of 167,000 jobs by economists.
Small business added 58,000 while medium and large business added 39,000 each.
The numbers provided by government
The government reported that the economy added 175,000 jobs in May, 2013. Yet, the unemployment rate dropped to 7.6% due to the government now counts more people in the work force—420,000 more. As a result, the number of people who wanted a job but could not find one last month is 18.472 million—400,000 more than April.
Where did this 400K number come from?
Last month, the number of people not counted in labor force decreased by 69,000 and the government counted 408,000 less who were not in the labor force but wanted a job—and could not find one. These helped bringing the true number of unemployed persons down to 18,072,000 (11,659 + 6,413) in April. Is this coincidence? Or is it the way the government is playing with numbers?
Anyway, let us look at the numbers released by the Bureau of Labor Statistics (BLS) to see the real state of employment (click here to access data prepared by the BLS).
|Civilian labor force:||155,654||155,524||155,028||155,238||155,658|
|Not in Labor Force:||89,008||89,304||89,967||89,936||89,705|
|Not in Labor Force—|
|But want a job:||6,750||6,631||6,821||6,413||6,712|
Numbers that stood out in this month’s report (from table A-8) is the number of people working part-time:
—the number of part-time workers due to economic reasons increased only by 26,000 from 18.908 million to about 18.934 million.
—the number of part-time workers due to economic reasons (including unable to find full-time jobs) decreased by 12,000 from 7.916 million to 7.902 million.
Hence, in May, economy gained a net of 175,000 jobs while there were only 26,000 more part-time jobs—a reverse of the trend seen for the last few months.
The good, bad and ugly news in the employment market
The good news is the economy added a net gain of 175,000 jobs—and only 26,000 part-time jobs.
The bad news is with almost 18.5 million needing jobs, it will take over 100 months at this rate of 175,000 a month. Now, Wall Street will jump up with cheers thinking the government will continue pumping in money–helping to keep the stock market red hot.
The ugly news is the government may indeed continue to pump in money as this is the only way Obama can do to help this economy from collapsing. One way to look at this is Obama pumped in 85 billion a quarter–the money this country does not have–to create about 170K jobs a month. That is 485K per job.