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Big Miss in May Jobs Report: Only 138K Jobs Added, Wage Growth Stagnant (The Fed’s Famous Chili Recipe)

The Bureau of Labor Statistics (BLS) just released their May jobs report.  

In a nutshell, it looks like The Fed’s Famous Chili Recipe. A recipe handed down since Alan Greenspan and perfected by Janet Yellen. 138K jobs added, stagnant average hourly earnings growth. Labor force participation declined to 62.7%. At least the unemployment rate fell to 4.3%.

Despite all The Fed’s rate manipulation, average hourly earnings YoY is back to the same level as the “end” of The Great Recession (June 2009).  And is now lower than DURING OR BEFORE The Great Recession.

People not in the labor force jumped from 94.375 million to 94.983 million, an increase of 608 thousand.

Despite normalized unemployment rates, laconic wage growth is not helping M2 Money Velocity (GDP/Money Stock). It is the lowest in history.

No, The Fed’s Famous (Economic) Chili recipe is not working.

 

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