Ignore “Very Fluky” Weak Jobs Report

Ignore “Very Fluky” Weak Jobs Report

FLASH: White House economic adviser Larry Kudlow said Friday’s weak jobs report is “very fluky,” and he would advise not paying “any attention to it.”

“I think you have timing issues with respect to the government shutdown. Winter, seasonal issues,” he said.

“I think it’s very fluky. I would not pay any attention to it to be honest with you,”  said Mr. Kudlow.

We are the fastest growing economy in the world from the major economies.”

“We are the hottest economy in the world. And we are expensing, despite the silly, fluky number, we are on a roll and I’m going to say that the outlook for the American economy is still 3% growth plus.”

Mr. Kudlow spoke just after the Labor Department said US job growth almost stalled in February, with the economy creating only 20,000 jobs as construction and retail payrolls dropped, which could raise concerns about a sharp slowdown in economic activity.

The job growth reported by the Labor Department on Friday was the weakest since September 2017, but it probably understated the health of the labor market as other details of the closely watched employment report were strong.

The unemployment rate fell to 3.8% and annual wage growth was the best since Y 2009. In addition, data for December and January were revised to show 12,000 more jobs created than previously reported.

The economy will mark 10 years of expansion in July, the longest on record, is slowing and the weakening job gains support the Fed’s “patient” approach toward further interest rate increases this year.

Economists polled by Reuters had forecast NFPs rising by 180,000 jobs last month and the unemployment rate falling to 3.9%.

The slowdown likely reflected the fading weather-related boost in the prior two months and workers becoming more scarce.

About 390,000 workers stayed at home in February because of the bad weather, not much different from previous years. The length of the average workweek fell to 34.4 hrs from 34.5 hrs in January.

Have a terrific weekend

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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