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Jobs and the Economy

June 4, 2010 – 4:53 pm

The jobs report disappointed everyone except maybe the politicians as they try to put a positive spin on the numbers. The May report showed only a little over 400,000 jobs created and the vast majority of those jobs are temporary census workers. The private sector jobs also grew and it has been several months of growth in a row, but it was less than last month. The report was not all bad. The work week is expanding meaning employers are busier but instead of hiring new full time workers they are having their employees put in overtime and they are hiring temporary workers. This pattern is the same as past recoveries from a recession.

We are going to have to get used to a very slow, painful recovery. There is no doubt that we are exiting or have exited the recession, however it is not a typical recovery. There is simply too much overhang debt that we are still working off. Too many homes are still in or close to foreclosing and construction spending, though higher in April and much more than expected, is not going to be the catalyst it normally is when coming out of recessions.

The ship of our economy has turned in the right direction and since it is a very large ship and difficult to turn it will likely stay in the right direction. It is just moving very slowly.

Good Trading,

Steve Peasley

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