The Employment Picture Shows Signs of Life II

Our concern with the appearance of a great employment report was going to be the details. As we highlighted last week, the government adjusts the numbers based on a prediction of how many new businesses were started and the resulting new jobs created. The additional jobs for may from new business formations was 220,000., a number that is 27% greater than last year. The reported loss of jobs was 345,000 for this May which was well shy of the 500,000 most economists were expecting. Does it seem likely that the business environment this year created 47,000 more jobs from new businesses than last year? Maybe but we remain sceptical that a total of 220,000 new jobs were created in May from new ventures. If we are correct, the employment picture isn't getting much better and the facts will become apparent in the not too distant future.