Doesn't Limited Jobs Growth Equal Higher Profits?
After a surprisingly weak employment report today shouldn't investors focus on the fact that less workers and hence salaries will mean higher profits for corporations. After all we already know that November was a blockbuster month for retail sales (see Mark Perry's blog ) so the limited job growth isn't impacting spending. So why are all the headlines on jobs so doom and gloom? It's only gloomy if your looking for a job. Only 50,000 private jobs were created in November which was a far cry from the 150,000 prediction and 160,000 created in October. It appears that the seasonal adjustments for November were whacky so don't be surprised if we see a large adjustment upwards. So why all the negativity? The market is holding up well so clearly investors get the profits impact better then economists. After all adding 50K jobs last month and 160K in Oct is indeed job growth. Job growth leads to more income and hence spending. Might be lower then expected, might be slo...