- Employment up 88K (Far below estimates)
- Long Term unemployed remained constant at about 4.6M
- Unemployment rate ticked down ever so slightly 7.6%
What this jobs report reinforces are two major headwinds to the economy:
- Level of unemployed is staying relatively flat
- Those who are employed will continue to feel restrained as they feel their employment could be at risk.
This graph highlights the issue of those who have dropped out of the employment market. As you can see we are bouncing around a bottom but the number is around the level we were at in the mid 1980's. Two causes for this and both are a headwind for logistics:
- People cannot find employment - restrained spending
- People do not want to find work - A major societal shift.
No matter which way you look at this, we know this is not a good sign for a robust freight recovery.