Sunday, May 6, 2012
Any way you slice or dice it, the April jobs report was terrible—and terribly disappointing. Employers added just 115,000 workers to their payrolls last month, way below the 180,000 Wall Street economists were expecting. Hiring has now slowed in three straight months. Job growth in March and April averaged 135,000, down from an average 252,000 per month in the three months to February. As IHS Global Insight explains: “Prior job gains at over 200,000 per month were inconsistent with the modest pace of recovery in overall output – GDP was up only 2.2% in the first quarter. It now appears that jobs have decelerated into line with GDP, rather than GDP accelerating to catch up with jobs.”
And JPMorgan put it this way: “The April employment report was softer than expected and signaled a downshift in labor market momentum.”
The low labor force participation really is alarming. It is a sign more and more people are just giving up on being employed. Yet I don't see that the public at large is getting the message. Romney still looks like something of a longshot in November. It is as we are determined to become Europe, in the sense of high structural unemployment and accelerating insolvency. I would really like to know what Krugman's plans are sheltering his assets.