Nonfarm payroll employment edged down (-85,000) in December, and the unemployment rate was unchanged at 10.0 percent, the U.S. Bureau of Labor Statistics reported today. Employment fell in construction, manufacturing, and wholesale trade, while temporary help services and health care added jobs.
This is the December 2009 report.
Unemployment remains “stuck” at 10.0%. U6 is at 17.3%, up from 17.2 in November. But there’s even more important news which most will miss…
CPI rose .4% and even more importantly than that, the PPI rose 1.8%. In fact, here’s what is striking about the PPI report.
Change from the last 12 months: finished goods – 2.4%; intermediate goods – 1.4%; crude goods – 5.7%.
The rising prices in intermediate and especially crude goods will only increase in the coming months and will soon translate into higher finished goods prices. In a recession, with a large surplus of labor, an economy that is weak, hemorrhaging jobs, with declining investment, we are seeing inflation (in the mainstream vernacular of course).
It ought to be clear by now that stimulus not only doesn’t, but actually does the opposite.