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Friday, March 07, 2008

Ugly Jobs Report

The jobs report released today (March 7) by the U.S. Bureau of Labor Statistics was grim.

According to this latest look at the employment situation, we’ve been losing jobs over the past few months.

For example, according to the household data, 654,000 jobs were lost from November to February.

If we switch to the establishment payroll data, then 85,000 jobs were lost from December to February. But the private employment picture was worse. The private sector dropped 141,000 from November to February.

Two thoughts. First, these job losses certainly strengthen the case for the U.S. economy being in recession. Second, keep in mind that the bulk of new jobs in the economy are created by small businesses, and this is a strong signal that the entrepreneurial sector of the economy is not growing.

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