Private Payrolls Ease US Unemployment
The impact of private payrolls on employment is critical. Unemployment remains at epidemic proportions in America with the real unemployment much higher than the official statistic. It is estimated the real unemployment rate is around 22%, the official estimate is at 8.9% as at March, 2011. The Federal Reserve embarked on a quantitative easing policy that has pushed the costs of everyday food items higher. The weak US dollar has seen soaring prices of agricultural commodities devastating the purchasing power of average Americans and consumers around the globe. Indeed it has been the real catalyst for the Mid East revolution contagion that has swept from Egypt to Libya.
The ineptitude of governments puts greater significance on the private sector. ADP releases it’s private payroll numbers each month just prior to the Bureau of Labor Statistics employment report. In April they announced new jobs of 201,000. To make sense of this number it is worth noting the U.S. economy must create around 150,000 new jobs each month to match population growth. The average monthly increase in employment is 211,000 new jobs in America over the past four months (December 2010 through March 2011).
The has been a pick up in job growth in the U.S> in 2011m the average job growth August through November 2010 was just 74,000 of new jobs.
One would expect construction sector to be struggling as we see house prices continue to fall and the industrial economy still weak. Indeed it does remain weak with construction employment dropping 5,000 in March 2011. For an objective correlation of the property bubble the total decline in construction jobs since its peak in January 2007 is 2,126,000.
The Feds money printing though has helped employment in the financial services sector increase by 4,000 jobs in March.” Though this was the first increase since 2007.
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