Payrolls Drop Worst in 5 Years
The jobs report came out this morning before the market opened with a not so good message, payrolls had fallen by 63,000 which is the most in five years.
This came after January which was 22,000 and sought as very bearish. Overall the jobless rate declined to 4.8%, which relays a working force that continues to shrink month over month. 4.8% arguably puts unemployment at recession type levels.
Though the number itself is important, the overall decline is even more significant when looking into the future. High unemployment is not good for the overall economy as it limits consumer spending, which in turn forces companies to cut back on costs.
Meanwhile, inflation continues to creep up and with unemployment creeping up with it, it can turn into (some argue it already has) an ugly case of stagflation.
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POSTED IN: Economy
3 opinions for Payrolls Drop Worst in 5 Years
Brandon
Mar 7, 2008 at 12:42 pm
Stagflation is already occuring as this sick cycle continues
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