Strength of jobs growth is based on statistical projections, not real jobs. Rate increases are premature. It is all about politics.
2004/05/11 07:16:02 - Investors should not get too excited about the recnt labor report given last Friday - NY Post : The New York Post discusses Friday's labor report and suggests that investors should not get too excited about all those new jobs that were supposed to have been created in April. According to the article, the bottom line is that most of the 288K jobs that the Labor Department says were created last month may not really exist and they could be figments of statisticians' optimism. Back in the March employment report, the government added 153K positions to its revised total of 337K new jobs because it thought (but couldn't prove) loads of new co's were being created in this economy. That estimate comes from the Labor Department's "birth/death model." As staggering as the assumption about new co's was in March, the Labor Department got even more brazen in April as it was disclosed that these imaginary jobs had been increased by 117K to 270K for the latest month. Without those extra 117K make-believe jobs, the total growth for April would have been just 171K, which is sub-par for an economy that's supposed to be growing at more than 4% a year.