The Rate Guy Jobs, Schmobs
Jun 8, 2025
Dive into the latest jobs report as hosts analyze what the numbers really mean for inflation and why the Fed is hesitant on rate cuts. Experience a colorful Twitter showdown featuring public figures on economic contradictions, adding some humor to serious economic matters. Discover shocking revisions in job growth statistics and their impacts on workforce sentiment. Plus, get insights into the curious behavior of the U.S. Treasury market and speculations leading up to the Fed's meeting!
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March Jobs Report Heavily Revised
- The initially strong March jobs report showing 228,000 jobs added was heavily revised down to 120,000.
- This large downward revision reveals the labor market is weaker than the headlines suggested.
Job Gains Near Contraction Threshold
- Recent job additions are flirting with or below 100,000, which is the level needed to keep up with population growth.
- Sub-100,000 job gains signal contraction territory for the labor market.
Unemployment Rate Masked by Labor Force Drop
- Unemployment rate held steady at 4.2%, but 696,000 people stopped looking for work last month.
- This causes the unemployment rate to artificially stay low, masking labor market weakness.