Unemployment Returns to 5.7%

While there was a net loss of only 1700 jobs in May, numbers of full-time employed dropped by 26,600 offset by an increase of 24,500 part time jobs. The Bureau of Statistics reported yesterday that since November, the percentage of the workforce without a job or wanting more work has risen from 11% to 13.4%. The move to part time work has clearly been forced on many workers effectively 'hiding' the real situation. At some point the move to part time wont be an option and the headline figure will start to creep up.

In the US their jobless claims fell by 24k to 601k - the lowest reading in almost six months and moving in the right direction. The number of people remaining on claims after drawing a first week rose to a record 6.82 million. Also US business inventories fell for the eight straight month, down by 1.1pct in April, while business sales also declined by 0.3pct. The inventory to sales ratio now holds at 1.43 months.

On a brighter note however US retail sales rose by 0.5pct in May - the biggest increase in the sales since January. The March and April numbers were also revised higher. Retail sales ex Auto’s also rose by 0.5pct. The increase in sales was largely due to gasoline sales (up 3.6pct). Increases were focused in necessities, such as food sales (up 0.4pct), healthcare (up 0.7pct) , and clothing (up 0.4pct).

A clear picture of recovery is still a little way off.