October Jobs Report

by Jay Pestrichelli on November 2nd, 2012

Another month and another jobs report that the pre-market liked. New jobs created came in at 171,000 vs. the 125,000 expected. However, the unemployment rate ticked up to 7.9% up from previous month’s 7.8%; a number that made such a big splash with accusations of pre-election manipulation.
Revisions were also good. August was revised up by 50k more and September by 84k more. So the net of the report was an additional 305k jobs. However, we’re still under the 200k needed each month to keep up with the growth of population. Here’s the last 13 months of data.
However, the euphoria was short lived and the markets started heading lower within the first half hour of trading.
A look at sector by sector showed nice progress in the Transports, Retail, Healthcare, and Food Services. All of these continued their trend of ticking upward as well as outperforming over the previous years.
The disappointment was again was seen in the areas of construction and information that are both still worse than last year this time.
We will also add that government returned to a contracting number as well which is more consistent with what we’ve seen over the last year with the exception of last month and its revisions.
Overall the jobs report, while better than expected, still isn’t enough to support a growing population and this becomes another data point that illustrates how slow this recovery is going. 

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