Today’s report that the U.S. economy only created about 80,000 net new jobs is not good news, but it’s also not as bad as the media is making it out to be.
· “Stocks Plunge On Economic Fears,” says a CNN headline. “Jobs Report Deepens Economic Gloom,” says FoxNews. “Dismal U.S. Hiring Shows Economy Stuck In Low Gear,” is how Reuters covered the weak jobs report.
But if you look at jobs numbers during previous recoveries, this is no reason to think jobs formation is collapsing. The household survey is materially better than the jobs data looked at more widely, the establishment survey. Plus, private sector job formation has been looking very normal from a historical perspective.
On Tuesday, July 10 at 4 ET, I’ll be giving a full one-hour review of all the recent economic numbers. You can register here.