The 115K new jobs that were created was well below the 160K that analysts had expected.
And some of the internals are distressing too.
The public sector is ugly.
There were 15K public sector jobs lost, worse than the 5K that was expected.
That’s worse than last month, and that’s worse than the virtually flat level of jobs created than we saw two months ago.
Remember, two months ago we were hopeful that this meant that the public sector bleeding has stopped.
This is a big deal, since the public sector is what’s been creaming GDP and jobs.
What’s more, this news comes amid news that California is missing badly on its tax goals for April.
Wouldn’t be beyond the ‘rats to take from whatever stimuli accounts with money in them they can muster, in October, and Tout big time - hey look, “We are Creating Jobs!”, while they create temporary poll jobs for the election, where the tasks include driving elderly to the polls, manning polling stations, manning polling station counters, helping those voters needing help (ie, provisional ballots, ID “problems”). While these jobs would be temporary, there would be a promise to the best “performers” for future employment in the government, if things work “out”.
Oh, expect the above bigtime in certain states in “need”... you know, so-called swing states.
My county’s real estate valuation just went down...it had stayed steady through the recession, but the appraisers could no longer keep them steady with a straight face.
Of course, this means tax revenues will drop...and this fall, our local budget hearings will be very animated. I see lots of public sector layoffs coming. I bet this is not an isolated case; and, we will see this happen all over the country.
Another revenue drop - food stamps. There is no sales tax on items purchased with them in many states. As their use goes up, local revenues go down...more government layoffs.
We have set ourselves up for a quick spiral.
Fundamentally, I do think it is good to shed public jobs, and gain private ones...but if the losses outpace the gains, its not good.