The May Jobs Report

Still struggling a bit in the USA, it appears. The latest jobless numbers came out last week, and the consensus was fairly gloomy. Oh, well. This article by Justin Lahart in the Weekend Journal kicks this ball around in the dirt a bit. China is quite predictably selling off their short-term US Treasury holdings, and the Dow has ticked backwards for five consecutive weeks.

It appears we have room for improvement, eh? The housing market, for better or worse, is a crucial indicator of our nations’ economic strength. As I’ve mentioned before, we’ve got quite a way to go here. The final tally still isn’t even racked up on the total number of homes underwater. Part of the reason is that the banks left holding the paper aren’t in the position to absorb all the losses at this time. Furthermore, immediate liquidation of all delinquent properties isn’t possible—the devaluation of those currently making their payments would make virtually every home in the country unaffordable.

So we’re stuck for a bit. There is some good news, however. From May’s jobs report, Educational services, health care and social assistance, and mining and logging were sectors showing a net positive overall growth from January 2008 through May 2011. So…someone out there is still harvesting some trees. Construction still hasn’t made a complete recovery, but there are signs of this trend leveling out, and possibly rebounding pretty well in the next couple of years.

There is definitely development going on—it’s just a little more selective, and one hopes quite a bit better thought out than the practices of the first decade of this century. We will see. I remain optimistic. Growing pains are inevitable when an entire generation hadn’t seen a substantial letdown in economic growth. The measure of our character will be demonstrated, I suppose, in the nations’ response over the coming years. I’m cheering for consumer confidence!