Unemployment back above 9%
The addition of fewer jobs than expected, plus an unexpected bump in new unemployment claims, pushes unemployment back up. It also signals what many are suggesting is the second dip of a "double - dip" recession.
Some of the slowdown can certainly be traced to Japan, and the earthquake's impact on their production. Some of my clients have been impacted by this, and one client (headquartered in Japan) has laid off most of their staff due to parts shortages.
However, I'd also suggest that our continued lack of commitment to any near term supply side domestic energy policy, and QE1 and 2, are also prompting this. Inflation due to high gas prices and the expansion of the money supply is becoming more evident. The fact that short term rates remain at or near zero is continuing to "degrease the skids", and keep much needed capital out of the market.
We need to change direction, and soon.
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