Hicks: Jobs Report is ‘Just Bad’

Ball State University economist Michael Hicks says today's national jobs report shows continued weakness in the labor market. The U.S. Department of Labor says the economy added about 126,000 jobs last month, keeping the unemployment rate at 5.5 percent. Hicks says the report will likely delay an interest rate increase.

Muncie, Ind. — Ball State's Michael Hicks says that today's jobs report shows the weaknesses of the nation's labor market and will most likely keep the Fed from raising interest rates in the near future.

The U.S. Department of Labor reported this morning that the economy created about 126,000 jobs last month, the worst month for creating jobs since December 2013. The nation's unemployment rate stayed at 5.5 percent.

“The raw numbers are bad,” said Hicks, director of the university's Center for Business and Economic Research (CBER). “What is even worse is that more than half of all of the 126,000 net new jobs are part-time.

“It is likely that these numbers will be revised upward; even so, this is further evidence of weakness in labor markets the Fed will take seriously as they decide to delay raising interest rates.”

Source: Ball State University