Labor

ISM New York's purchasing managers survey collapsed in May from 57.00 to 37.2 - the lowest since April 2009. The bloodbath is the biggest monthly drop since May 2007. While 'hope' rose rather stunningly from 56.0 to 68.0 - the highest in years, current employment and 'quantity of purchases' both plunged to cycle lows.

So much for that April bounce!

Note we have adjusted the chart by centring ISM NY 50 print at 0 which separates expansion from contraction.

Transitory?

Initial jobless claims printed 267k - slightly better than expected and very slightly less than last week - which is oddd because both ISM Manufacturing and ISM Service employment data suggests a very different picture indeed.

Everyone knows the manufacturing industry is losing...

But don't worry, the Services economy is doing great and generating jobs...

Oh wait!!

Printing a perfectly as-expected 173k rise in jobs for May, ADP Employment change offers hope for tomorrow's payrolls to give The Fed the go-ahead for a rate-hike. This is still the second lowest print since last September as manufacturing (and goods-producing) jobs fell once again.

A little hope for tomorrow...

But note that today's ADP report does not include the Verizon strike data which means that the 173k ADP print is likely higher than what tomorrow's payrolls print will be (by around 25-35k)

It is often said that immigrants “do the jobs that Americans won’t do.” While there are no major immigrant-dominated jobs in the U.S.—even about half of drywall installers are native-born—the claim does contain a kernel of truth. For over 50 years, a growing percentage of native-born American men have dropped out of the labor force altogether. For these men, every available job is a job they won’t do. Rather than focus on reversing the trend of idleness among native men, American politicians and business leaders have bandaged the problem with immigrant labor.

Submitted by Mike Krieger via Liberty Blitzkrieg blog,