Source: Fortune
Summary
Analysts and economists are questioning the accuracy of the June jobs report from the U.S. Bureau of Labor Statistics, citing a surprising decline in leisure and hospitality jobs despite the World Cup. The report showed a loss of 61,000 jobs in the sector, which is unlikely given the event’s expected boost to tourism and employment. Many experts expect revisions to the numbers in the coming months. The overall economy added 57,000 jobs in June, about half the expected number.
Our Reading
The numbers tell one story. Jamie Cox, managing partner at Harris Financial Group, calls the data “misleading” and expects revisions. Pimco economist Tiffany Wilding notes that the leisure and hospitality sector was expected to benefit from World Cup hiring. RSM Chief Economist Joe Brusuelas advises taking the report “with a grain of salt.” Bank of America data shows a boost in card spending during the World Cup, driven by non-locals. The announcement sounds like a familiar phase of skepticism towards official statistics.
The strategy enters a familiar phase: downplaying the initial numbers and expecting revisions. The trend is still the same – companies are reluctant to hire, but not rushing to fire, according to Paul Donovan of UBS.
Author: Evan Null
