More Than...Less Than...

A Bloomberg head line states, "U.S. added 57,000 jobs in January, fewer than estimated, ADP survey says."

I'm sure you, the reader, like myself, wonder what the number 57,000 really means. Well, it's the lowest number since July 2003. It is also less than half the amount of the 121,000 jobs created in January.

The survey said that companies were putting off hiring new workers in preparation for an economic slow down. The largest declines were seen in residential housing and manufacturing. Data continues to come out showing the decline in the strength of the labor sector. I believe this Friday's unemployment statistic will be significant displaying further weakness in the labor market.

A decrease in new jobs will effect consumer spending. Consumer spending and the war efforts are the two items keeping GDP growth positive. A weakening in labor statistics will carry weight in the consumer markets which make up 70% of GDP.