Not looking hot on the jobs front

October 2, 2009

Data just out shows the pace of joblessness picked up in September, snapping what had been a steady improvement from “really terrible” to “at least it’s not as terrible as the prior month.” The drop in non-farm payrolls was even worse than Goldman Sach’s downwardly revised -250K forecast, coming in at -263K. But also take a look at July: revised to -304 from -276k. August was revised to -201K from -216K.

The unemployment rate ticked up an expected 0.1 ppt to 9.8%.

Also average hours worked in a week slipped further to 33.0 from 33.1. I guess employers are cutting hours as well as jobs. Not exactly confidence inspiring for the nation’s shoppers.

This is not good news for those hoping for a consumer-led recovery. Sure inventory rebuilding will give GDP a nice pop over the next two quarters, but then what? And inflation? Not likely any time soon with numbers like these.

You can find the full report here.

Treasury market seems to be thinking along the same lines, as yield on the 10-Yr note falls even more to 3.12%. Dollar also getting hit.

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