Kaboom

By any measure, the jobs report released Friday was a complete disaster, and the economy, for all the manipulation, is extremely fragile with weakening market conditions creating uncertainty moving forward.

As reported Friday by Marketwatch.com, "The U.S. economy created just 38,000 jobs last month, the weakest level of hiring in nearly six years."

Zero Hedge reported, "The household survey was just as bad, with only 26,000 jobs added in May, bringing the total to 151,030K. This happened as the number of unemployed tumbled from 7,920K to 7,436K driven by a massive surge in people not in the labor force which soared to a record 94.7 million, a monthly increase of over 600,000 workers.

Reports Reuters, "Underscoring the report's weakness, employers hired 59,000 fewer workers in March and April than previously reported. While the unemployment rate fell three-tenths of a percentage point to 4.7 percent in May, the lowest level since November 2007, that was because 458,000 Americans gave up the search for work."

While the dismal non farm payroll numbers do not typically have as much of an effect on the market of the level of homes similar to the subject as the market as a whole, it does at the very least signal a weak economy and weakening market conditions creating uncertainty moving forward.

"The chart below shows the gaping disconnect between declining total business sales (all businesses, not just the S&P 500 companies) and total non-farm employment. Something has to give – it’s starting to:"

Beware.

What Makes this Jobs Report so Truly Ugly?---Wolf Richter of WolfStreet.com