Economists react to the June jobs report

Responses ranged from a joyful 'Yabadabadu!' to a warning to 'curb your enthusiasm.'

By MSN Money Partner Jul 3, 2014 1:19PM
Credit: © Nati Harnik/AP

Caption: A sign points to a job fair in Lincoln, Neb.
By Greg Robb, MarketWatch

Here's a roundup of reactions from analysts to Thursday’s report, which showed the U.S. economy created 288,000 jobs in June and the unemployment rate fell to 6.1 percent. 


--"This was a strong report any way you slice it." -- Omair Sharif, economist at RBS Securities.


--"There is clear tension growing between what is shaping up to be flat GDP growth in H1 2014 and the resiliency we have seen in hiring. Typically, we view payrolls as a lagging indicator of GDP growth; however, recent periods where payrolls outpaced GDP growth suggest that we could see GDP play catch-up to the pace of employment, although the timing is uncertain. This would be consistent with the strong tone we have seen from both business and consumer sentiment surveys." -- Bricklin Dwyer, economist at BNP Paribas.

--"Still, without a clear step-up in wages, and whilst the unemployment rate remains 6-something per cent, we suspect the Fed will be loathe to change its formal stance with respect to the taper, or to the possibility of normalizing rates. The time is soon coming that the FOMC will have to change its tack with respect to its policy stance, and forward guidance. Today's release takes us a little closer to that point, but as FOMC chair Yellen's recent testimony shows, they are not there yet." -- Rob Carnell, chief international economist at ING.

--"Taken as a whole, the latest five monthly jobs reports are consistent with the view that in spite of a horrendous first-quarter GDP result that was the victim of a 'perfect storm' of negative circumstances, the economy is well underpinned." -- Josh Shapiro, chief  U.S. economist at MFR Inc.

--"Curb your enthusiasm . . . the year-over-year acceleration is still small -- rguing that this has been catch-up. Hours worked and average hourly earnings do not imply much momentum for the economy . . . the household report tells us that more than all the net job gains this month were part-time jobs, as full-time jobs dropped by 700,000." -- Robert Brusca, chief economist at FAO Economics.

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11Comments
Jul 3, 2014 4:15PM
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Any jobs created are temporary to part-time, at best. Of course, anything reported by D.C. is laced with bulls**t, so it's safe to say that the numbers reported are highly exaggerated.
Jul 3, 2014 5:37PM
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By now, everybody knows, or should know that the Government statistics understate real inflation so as to keep the increases in Social Security and pensions down (largely because older folks don't increase their spending as much during good times--and thus do not boost the economy as much) and they also understate real unemployment (so as to make the economy look better than it really is, for a number of reasons.  In short, the Government lies to us maybe less than some other governments, but lies nonetheless.  This is true no matter which party holds power.  Here's a couple questions for you:  Why do we let the Supreme Court hold office for life! And, why are they not elected, say for a period of seventeen years or so (wouldn't occur at the same time as presidential or congressional elections).
Jul 3, 2014 3:12PM
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Strawberry Pickers Wanted !
Waiters Wanted !
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If the stat keepers can find how many were hired, then they can find out how many are full time. They just won't tell us.
Jul 3, 2014 6:28PM
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The Quality of Jobs has been a problem for well over a Decade. The Housing Bubble and the resulting ATM masked a ton of that. Now we are left with the Fallout. Corporations are more concerned with Financial Engineering then with training New Workers.

Greed and Corruption has been the Center of all our Problems. After the Great Recession, would if be that hard to ask for the World to have learned a thing or Two about Morality and Sound Finance. Clearly that has not been the CASE.

Job Numbers are based on a Survey, never forget that.

Jul 3, 2014 5:41PM
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T-Baggers' blood boils every time there are good economics news. 
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