> June 2009 Employment Report

Employment Report Flunks Second Derivative Test...So much for the second derivative test, at least when the subject is the monthly employment report. Nonfarm payrolls fell by a larger than expected 467,000 jobs in June, with revisions to data for April and May reducing previously reported job losses by a net 8,000 jobs. Beyond the headline job losses, what is particularly troubling about the June employment report are the data on hours worked and average hourly earnings. Average hourly earnings were flat in June, while average weekly hours fell to a record-low 33.0 hours, and revisions resulted in lower average hours and average hourly earnings in April, meaning personal income for Q2 will be even eaker than we had anticipated. This spells more bad news for consumer spending and top-line GDP growth. Click Here for Full Story