Unemployment rate drops to 4.8%.
Jobs: jobless report for September, 2021, a debacle. Labor participation rate drops to 61.6%. Largest drop since December, 2020.
The market: "confused." Dow turned negative when the number was released (7:30 a.m. CT; it happened almost immediately; less than five minutes later (7:35 a.m. CT), the Dow (pre-market trading) returned to where it had been. Now about ten minutes later 7:50 a.m. CT), the Dow has turned negative again.
Jim Cramer's take:
- Jay Powell: right again!
- no need to ridicule this man;
- the Fed -- Jay Powell -- gets some breathing room;
- Jay Powell can now say "I told you so"; remember, Powell's number one concern has been people -- getting people back to work, and helping them until things return to normal
- the number was good for Jay Powell;
- Jay Powell: will stay the course;
- corporations unable to bring workers back to work;
- teachers afraid to go into schools;
- Cramer has flipped a bit: now feels things are not getting better; seems disappointed; not his usual joyful self;
- boomers have said "enough is enough"; boomers have savings; no reason to go back to work;
- if one is 63 years old, is it worth exposing yourself to a classroom full of kids, vaccinated or not?
- ENDS THIS ARGUMENT: ending additional unemployment benefits would bring more folks back into the job force. Didn't happen.
Others:
- unemployment rate is now where the Fed predicted it would be by the end of the year, but ...
- the numbers were so bad, the Fed may have to slow down a bit on tapering;
- how long will the labor situation last? will last different lengths in different sectors
- leisure and hospitality: even if it remains at a "good pace," the job shortage in lesiure and hospitality will last eight to ten more months -- that takes us through all of 2022 travel season;
- where have all the workers gone?
- retirements accelerated
- child care issues
- "deep resignation"
- not mentioned:
- mismatch in skills
- the November, 2021, Fed meeting was predicted to be a yawner; now? all of a sudden, the November, 2021, Fed meeting may be very, very interesting
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