The Two Things That Made The Jobs Report A Disaster

The two things that made the jobs report so weak were: The global economy and the US government.

Here’s a chart showing the monthly change in employment in four areas: Manufacturing (red), food services (blue), the public sector (green) and retail (orange).

It starts from the beginning of the year. As you can see, domestically oriented sectors like food service and retail are doing well.

In fact, both saw their biggest gains in several months.

But on the flipside, manufacturing (which is exposed to the weak global economy) got slammed. And the public sector continues to be in job-cutting mode.


Photo: FRED

For what it’s worth, this is consistent with the split we saw in the ISM reports.

The services ISM saw the employment index gain, while the manufacturing ISM saw employment fall.


Photo: FRED

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