U.S. Job Market Stumbles as Government Becomes Sole Job Creator \ stacker news ~econ

U.S. Job Market Stumbles as Government Becomes Sole Job Creator

586 sats \ 30 comments \ @TomK 3 Jul econ

The latest data reveal significant weaknesses in the U.S. job market, highlighting the government as the primary source of new employment. Market reactions include falling interest rates and a declining dollar.

Initial Jobless Claims: 238K (up from 233K; expected 235K)

Continuing Jobless Claims: 1858K (up from 1839K; expected 1840K)

Trade Balance (May): -$75.10B (previous -$74.60B; expected -$76.30B)

https://m.stacker.news/38061

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69 sats \ 3 replies \ @plebpoet 3 Jul

Anecdotally, I've know more than a couple people who are applying and interviewing for gov jobs. I hope that is a choice I never have to make. The part of the interview process that includes having your friends be interviewed to vouch for your character...by the gov.....no. You can keep that. Just creeps me out.

63 sats \ 2 replies \ @TomK OP 3 Jul

Incredible! Here in Spain there is nothing better in the eyes of the masses than hiding behind a gov desk

59 sats \ 1 reply \ @plebpoet 3 Jul

curious! in the eyes of the masses, is hiding behind a gov desk implicative of a safe, comfortable life?

10 sats \ 0 replies \ @TomK OP 3 Jul

absolutely. the state has displaced the private sector here to such an extent that it retains a 60% state quota for itself. after all, people can earn next to nothing anymore

89 sats \ 1 reply \ @SatsMate 3 Jul

Strong warning signs we are already in a recession. Hold onto your jobs while you can! It is important to remember government jobs aren't a net benefit to the economy, rather a parasite.

Weakness is here in the economy!!!

0 sats \ 0 replies \ @TomK OP 3 Jul

Exactly. And save what You can!

42 sats \ 1 reply \ @IamSINGLE 3 Jul

Biden is creating jobs in preparation for election. He thinks that this way he can turn US in his favour. But I doubt it will happen.

0 sats \ 0 replies \ @TomK OP 3 Jul

That's how democracies usually die

17 sats \ 0 replies \ @Satosora 4 Jul

I have had family tell me to apply for a government job because they pay a pension. Which can be nice.

17 sats \ 20 replies \ @riberet19 3 Jul

This is one of the main data that the Fed looks at to lower interest rates, right?

16 sats \ 0 replies \ @TomK OP 3 Jul

It's the most important, yes

16 sats \ 18 replies \ @Bell_curve 3 Jul

Yes but we want private sector growth

59 sats \ 17 replies \ @riberet19 3 Jul

What do you think will happen to the American economy when rates start to fall?

58 sats \ 9 replies \ @Bell_curve 3 Jul

Depends on inflation, if inflation target 🎯 remains under 2 percent

Lower rates should mean more commercial activity

The other question is will the bond yield curve remain inverted

59 sats \ 7 replies \ @riberet19 3 Jul

I've heard many economists say that when rates fall the market will crash, how true can this be? because they supposedly discount that something bad is happening in the economy and that is why they lower interest rates.

33 sats \ 2 replies \ @TomK OP 3 Jul

A sharp fall of rates normally anticipates a deep recession. This will make investors reduce their holdings while insolvencies rise etc etc. The market crash is the bursting bubble that follows when the herd leaves the room, needs cash

59 sats \ 1 reply \ @riberet19 3 Jul

This is what usually happens, that is, there has never been a fall in interest rates without a recession, or I am wrong

49 sats \ 0 replies \ @TomK OP 3 Jul

I do not remember any other important case.

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16 sats \ 3 replies \ @Bell_curve 3 Jul

I don’t understand that reasoning either

59 sats \ 2 replies \ @riberet19 3 Jul

But this is what has usually happened during past interest rate cuts.

33 sats \ 1 reply \ @TomK OP 3 Jul

The cut is the sign of weakness and normally follows after they broke a market or a segment like banks

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17 sats \ 0 replies \ @TomK OP 3 Jul

Don't overrate the CBs influence on the bond market. Long term thr market is in full control and after a possible deflationary shock rates will explode higher

33 sats \ 6 replies \ @TomK OP 3 Jul

A fast credit boom. Than a sharp rise hand high yields over multiple years to eliminate bad debt