Improved Job Numbers
Improved Job Numbers– The recent jobs report indicates 140,000 jobs were created in the private sector during November. Although any good news is welcome, the down side in the report is that these numbers include temporary jobs connected with the holidays and the public sector lost 20,000 jobs. The loss of public sector jobs means that jobs we know that pay a living wage with benefits have declined while temporary jobs usually don’t pay a living wage or provide benefits increased.
The greatest risks to our economic recovery and continued improvement in the number of jobs are the brewing financial crisis in Europe and oil prices. In our world economy, trouble in Italy, Greece, Spain and Portugal could push the U.S. back into recession and trigger more government deficit spending to stem a new tide of layoffs. Oil prices are artificially high right now but any shock in the middle east like Israel or others attacking Iran could move prices 50% higher overnight. Our economy runs on oil and even a moderate period at very high prices combined with stock market uncertainty would start a new round of layoffs shortly thereafter.
Lets enjoy the holidays and hope the new year brings peace and prosperity everywhere.