The 78,000 New Hires for May stands as no crisis, but the 5.1 Unemployment rate means a lot; signifying a large increase in Discouraged Workers (fancy term for saying their Unemployment Benefits have run out). The second element comes in Oil, June futures sliding over $54 a barrel for Light Crude, though even the Gasoline stocks are over 1% higher than this time last Year. Another problem comes in the type of New Hires, the majority coming from Health Industry or residential construction. The Former means higher insurance premiums and Welfare transfers, the Later means temporary work tied to the Housing Bubble. It is not an economically bad position for the Economy, but not a good position either!
It reinforces the Author's belief that the American economy needs a Sea change. Americans have been altering the economy for the last thirty years in an endeavor to promote the provision of high-Wage, high-Tech Products to the rest of the World. This Pressure derives from the fact Corporate and Business management is universally College-educated, leading to a reciprocal desire to hire only College-educated personnel in their productive effort. This incites concentration on the high-Wage, high-Tech Products; which will provide the Profits to pay the higher Wage scales of College-educated Labor. There is only one problem with this scenario: Neither American or Foreign markets need the Productive capacity which such orientation of the Economy can produce.
The Trade deficit will continue until the American economy evolves into an economy which can produce the majority of Products that Americans consume. The pursuit of Six-Figure Incomes for Jobs will not produce those Jobs, or will they reduce Welfare transfers, the Trade deficit, and the Government deficit. New Jobs have to be created within the $30-50k range!! This has to come about with an actual reduction of Fuel consumption. lgl