Monday, June 8, 2020
Among market-moving economic reports the monthly payrolls report is among the most influential—and this week’s report was no disappointment. Almost all analysts were caught flatfooted at its release, with the consensus forecast expecting a loss of 7.25 million additional jobs and an unemployment rate of 19.0%.
Kate Bahn, director of labor market policy and economist at the Washington Center for Equitable Growth, was only able to mutter “WTF” at the release, while David Donabedian, chief investment officer at CIBC Private Wealth Management was quick to adapt to the new data stating that while the economy remains in a deep recession, “it is also clear that the recovery has begun, and that it is ahead of schedule.” But Paul Krugman, Trump-hating economist at the New York Times, suggested that Trump had somehow “gotten to the BLS” and cooked the numbers (he later apologized, sort of). Chart from Marketwatch.com.