Being the first Friday of the month, the jobs report was released. According to the official headline U-3 figure, unemployment fell to 13.3%. This was unexpected as unemployment was expected to go up for the month of May. Expectations were for job losses of some 8 million, but were shocked by a gain of 2.5 million jobs. Now, when one looks at the broader U-6 measure of unemployment, we are still north of 20%. Given the huge beat of market expectations, stocks rallied, and the NASDAQ made a new all-time high. Meanwhile, Americans are skipping meals and utilizing food banks, and protesting coast to coast – for some perspective.
However, if one actually reads the entire BLS jobs report, yes, you have to read to the end (or just scroll down), they note that there are calculation errors and had the numbers been accurately tallied, then the unemployment rate would have been 3% points higher – taking the unemployment rate above 16%. Makes sense? Also, it must be understood that the Payment Protection Plan, a Federal government plan to assist businesses, will turn loans into grants (meaning forgivable), if employers keep their employees on payroll and/or bring them back if they were already laid off. This may very well mean that people are “employed” on payroll, but actually not working – per the PPP. So, as we have been explaining for weeks, that these jobs numbers were going to be fishy and all over the place – well here we have it! Of course, this does not stop the President from coming out to proclaim this is the best report ever and blah blah blah – all hat and no cattle – he sales the sizzle and not the steak. We discuss many other data points and read the jobs report in its entirety during today’s podcast. Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Jobs #Depression #USA #Recession #Bailouts #Debt #Protests #Liberty #EndTheFed #Peace