What happens when you build an economy based on a 24/7 Fed & Government intervention and manipulation? Here’s what…
(by Half Dollar) After watching the weekly unemployment claims number rise into the tens of millions, everybody knew the number of job losses in April would be staggering.
First, here’s a look at the pre-report consensus estimates, via Econoday:
Yes, that’s a consensus estimate range of over 20 million jobs.
The actual report for April, 2020 was just released at 08:30 a.m. EST, and here’s how the numbers came in:
- Total employment dropped by 20,500,000 in April
- The unemployment rate rose to 14.7%
- Labor force participation decreased to 60.2%
More from the BLS:
Total nonfarm payroll employment fell by 20.5 million in April, and the unemployment rate rose to 14.7 percent, the U.S. Bureau of Labor Statistics reported today. The changes in these measures reflect the effects of the coronavirus (COVID-19) pandemic and efforts to contain it. Employment fell sharply in all major industry sectors, with particularly heavy job losses in leisure and hospitality.
In April, average hourly earnings for all employees on private nonfarm payrolls increased by $1.34 to $30.01. Average hourly earnings of private-sector production and nonsupervisory employees increased by $1.04 to $25.12 in April. The increases in average hourly earnings largely reflect the substantial job loss among lower-paid workers; this change, along with earnings increases, put upward pressure on the average hourly earnings estimates. (See tables B-3 and B-8.) The average workweek for all employees on private nonfarm payrolls increased by 0.1 hour to 34.2 hours in April. In manufacturing, the workweek declined by 2.1 hours to 38.3 hours, and overtime declined by 0.9 hour to 2.1 hours. The average workweek for production and nonsupervisory employees on private nonfarm payrolls increased by 0.1 hour to 33.5 hours. (See tables B-2 and B-7.) The change in total nonfarm payroll employment for February was revised down by 45,000 from +275,000 to +230,000, and the change for March was revised down by 169,000 from -701,000 to -870,000. With these revisions, employment changes in February and March combined were 214,000 lower than previously reported. (Monthly revisions result from additional reports received from businesses and government agencies since the last published estimates and from the recalculation of seasonal factors.)
Some mainstream financial news coverage, via Bloomberg:
U.S. employers cut an unprecedented 20.5 million workers in April, propelling the jobless rate to its highest since the Great Depression as the coronavirus-forced lockdown reversed a decade of labor-market gains in a single month.
The Labor Department’s report on Friday showed the jobless rate more than tripled to 14.7% from 4.4% a month earlier, a far cry from the 3.5% rate in February that was the lowest in five decades.
The drop in payrolls compared with the 22 million median estimate in a Bloomberg survey of economists. Projections varied widely — ranging from declines of 8.6 million to 30 million. The unemployment rate, which was forecast to climb to 16%, is set to rise further this month as millions more have filed for jobless benefits since this report’s mid-April reference period.
Some visuals, via Zero Hedge:
Here’s gold & silver’s knee-jerk reaction the moment the jobs report hit the tape:
So far, just like last we saw during month’s report, there’s not much reaction.
Of course, with such an unprecedented jobs report, this could be one interesting day in all of the “markets”.
Charles Hugh Smith and I have a very in-depth discussion about the job losses on Wednesday afternoon, including several things people aren’t taking into account when they attempt to argue that the US will have snappy recovery.
See that discussion right here (VIDEO WILL BEGIN PLAYING AT CORRECT TIMESTAMP OF JOBS DISCUSSION):
Thank you for your consideration!