RJ and Makay

This morning jobs numbers were disappointing overall, no doubt about it. The financial activities super sector lost 17,000 jobs in July wich is higher than the June's losses of 12,000 and May at 9,000 lost. The financial activities super sector encompasses banking, lending, insurance, securities, funds, and trusts. The unemployment rate in financial activities is the lowest in 11 months, a new record was set for average weekly hours worked, and a new record in average hourly earnings.

The unemployment rate in the financial activities industry (banking, insurance, financial services) came in for July at 6.4%. This is the lowest unemployment rate in the last 11 months in financial activities. Average weekly hours (for all industry employees) worked came in with a preliminary number of 37.1. The 37 average weekly hours worked posted in April and May, along with just over 37 hours in June and July are the highest we've seen in our industry in at least four years. The average hourly earnings of all employees in the industry are at $27.17 (preliminary) which is a new record. In July of 2006 the average hourly earnings were $24.66.

The excruciatingly slow job growth has taken somewhat of a pause in May. The census was we would add over 500,000 jobs in May which would give confidence to the likelihood of a self sustaining expansion. That didn't happen.

Employment grew by just 431,000 with 411,000 of those reflected temporary employed census workers. Private sector jobs increased by 41,000 after adding 218,000 in April. There is the positive that this is the 5th consecutive month payrolls have risen. YTD we are trending in the right direction with overall job growth, just without velocity.

The financial activities industry lost 12,000 jobs in May after adding 2,000 in April. 19,000 financial activities jobs were lost in March. In 2009 the financial activities industry lost 32,000 in May.