About Me

Retired chief investment officer and former NYSE firm partner with 50 plus years experience in field as analyst / economist, portfolio manager / trader, and CIO who has superb track record with multi $billion equities and fixed income portfolios. Advanced degrees, CFA. Having done much professional writing as a young guy, I now have a cryptic style. 40 years down on and around The Street confirms: CAVEAT EMPTOR IN SPADES !!!

Friday, June 03, 2005

May Employment Situation

Civilian employment increased by more than 400K in headcount during the month.

Measured yr / yr, jobs growth rose by 1.9% -- reasonable performance.

Growth of the labor force has been creeping up and increased by 1.4% over the past twelve months. This is still low enough growth not to force the Fed's hand on monetary policy.

Hourly earnings increased by 2.6%, which lagged inflation of over 3.0%. Bosses continue to be profound cheapskates, and are not rewarding the rank and file for productivity gains. This practice of "poor boying" the labor force undercuts sustainable consumer purchasing power and intensifies growing class differentiation. You do not have to be a populist to recognize that corporate greed is a long term economic negative.

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