August Payrolls disappoints at 235,000; one sector would benefit
So I guess that the Citi Economic Surprise Index per yesterday’s post is more concerning still, as analysts expecting +720,000 new jobs get whacked upside the head again. A click of the headline yields the report from BLS…
Here is the visual on who is and is not gaining employment. WTF happened to Leisure and Hospitality, a great modern American tradition? Manufacturing and Trans/Warehouse are solid and as an economic bull I’d rather see Professional Services strong than L&H services.
Meanwhile, with the extensions of unemployment benefits from Trump and Biden, everyone who wants a job has one. But isn’t this the month where the others have to put aside the bag of Doritos, get off the couch and get moving? Serious question. I do not tend to keep close track of political details.
Side note: gold and especially gold stocks benefit on economic weakness, not cyclical inflationary strength. So on balance this payrolls miss is mildly positive for the sector, taken in a vacuum. When the inflated mess falls apart old Huey here will be fundamentally refueled.
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