Morning Report – Jobs data dump 10/3/14

Markets are higher after a better-than-expected employment report. Bonds and MBS are down

Data dump from the jobs report:

  • Nonfarm payrolls + 248k (+215k expected)
  • Two month revision: + 69k (this is a good number)
  • Unemployment rate 5.9% (6.1% expected)
  • Labor force participation rate new low at 62.7%
  • Average hourly earnings flat
  • Average weekly hours increase to 34.6

The last time the labor force participation rate was this low was late 1977. This presents a dilemma for the Fed – will the labor force participation rate continue its decline? If so, then there is less slack in the labor market than we think. FWIW, I don’t see the Fed doing anything dramatic until we start seeing wage growth, and that is still nowhere to be found.

The ISM services index fell to 58.6 from 59.6 in August. This was slightly above the Street estimate of 58.5.

I know credit is tight, but what does it say when the Godfather of QE can’t refi? I guess the CFPB wants to make sure the Bernank doesn’t get a “predatory” loan.

4 Responses


    This doesn’t happen when you’re about to expand your Senate majority and pick up 50 or more seats in the House.


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