Sunday, June 03, 2007

If the economy's so great, why isn't retail growing?

In a nutshell, from the BLS's May 2007 report:
"Retail trade employment changed little in May and has shown no net increase since March 2006."

If the economy is doing so great, why aren't we adding retail jobs?

More from the BLS:
"Employment in construction was unchanged in May, with no significant movements among the component industries. Since its recent peak in September, construction employment has decreased by 54,000.
All the homebuilders are writing off inventory, selling the housing they do have (also known as new construction) at massive discounts. Foreclosures are setting new record highs (see Chicago Business' Foreclosures Still Raging in Chicago Area).

Meanwhile, reporting from FantasyLand, Bernanke said on May 17, 2007:
“We believe the effect of the troubles in the subprime sector on the broader housing market will be limited and we do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system,” Bernanke said.
While the rest of us are operating in the real world, we want to know this:
HOW THE HELL CAN THE BLS REPORT CONSTRUCTION EMPLOYMENT IS UNCHANGED?

For further information on the construction jobs number, check out Mish's post: Construction Jobs Puzzle.

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