A Jobless Recovery?

After all our worrying, we lost some construction jobs.

That’s the upshot of the latest employment report. The economy lost 36 thousand jobs, but net of construction we gained 28 thousand. That’s actually pretty positive, given February’s stormy history. Hours worked declined, but only modestly. In sum, the employment report was a jobs gain in all but headline.

That doesn’t mean that the economy is out of the woods. We’ll only gain a nominal number of jobs starting this spring, and we need a lot more than that to absorb the millions of workers this recession has displaced. Most of the jobs gained since the recession ended have been temporary positions. Eventually, those jobs need to either become full-time or get eliminated.

Still, it’s a lot better looking at modest gains than the 700 thousand jobs lost per month a year ago. The economy has improved, but jobs in homebuilding, mortgage finance, and related positions aren’t coming back any time soon. The mal-investment of the boom has created an oversupply bust that we just have to work out of.

It’s no fun, but we’ll work our way out of this funk, too. As Pasteur said, “Chance favors the prepared mind.”

Douglas R. Tengdin, CFA
Chief Investment Officer
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By | 2014-09-05T17:59:14+00:00 March 8th, 2010|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. - Leave a comment if you have any questions—I read them all! - And Follow me on Twitter @GlobalMarketUpd

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