Tags: Hatzius | lackluster | job | creation

Goldman’s Hatzius: Job Creation Remains ‘Lackluster’ Despite Strong Data

Friday, 05 Oct 2012 01:05 PM

U.S. job growth remains “lackluster” despite a stronger-than-expected September jobs report, said Jan Hatzius, chief U.S. economist at Goldman Sachs.

The U.S. unemployment rate dropped to 7.8 percent in September from 8.1 percent in August, the Bureau of Labor Statistics reported earlier.

The data revealed that employers added a net 114,000 jobs in September, while the report’s survey of households found that total employment rose by 873,000 in September following three months of little change.

Editor's Note: Economist Warns: ‘Money From Heaven a Path to Hell.’ See Evidence.

The number of unemployed Americans stands at 12.1 million, the fewest since January 2009.

“It was a very strong household survey — some of that was government some of that was involuntary part-timers — nevertheless it was a good employment gain,” Hatzius told CNBC.

“That basically gave you a big drop in the unemployment rate. Overall, I think it was pretty encouraging.”

Still, while more Americans are finding work, part-time especially, the fact that the economy only created 114,000 nonfarm payrolls reflects a less-than-stellar recovery.

“It’s lackluster, I would say,” Hatzius said, adding the number reflects a break-even economy.

“To keep the unemployment rate stable, you need about 100,000 jobs, if the participation rate doesn’t change,” he noted.

“Anything above 100,000 should push the unemployment rate down over time, but at 114,000, of course, only extremely slowly.”

Investors, meanwhile, echoed Hatzius, noting the improvement in the labor market, but pointing out that broader recovery remains sluggish.

“The bottom line is that the economy appears to be grinding along at a pace that is universally unsatisfying, and well short of the pace needed to ramp up the still lackluster pace of job creation and promote better household income growth,” said Jim Baird, chief investment strategist for Plante Moran Financial Advisors, in a note to clients, according to CNNMoney.

Editor's Note: Economist Warns: ‘Money From Heaven a Path to Hell.’ See Evidence.

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U.S. job growth remains “lackluster” despite a stronger-than-expected September jobs report, said Jan Hatzius, chief U.S. economist at Goldman Sachs.
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Friday, 05 Oct 2012 01:05 PM
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