The May jobs report came out today indicating the creation of 175,000 jobs in the United States by employers in the month of May. By the conclusion of the trading day on Friday, the DOW had risen by 207 points to close at 15,248. This has created an even bigger bubble within the stock market.
Yet, the increase in jobs also meant an increase in the unemployment rate as the labor force increased, signaling more out of work individuals are seeking work. The figure rose from 7.5% to 7.6%. But clearly the jobs report was a positive for the US economy. The jobs report beat the forecast that analysts had predicted, which is partly why the markets went up.
However, the positive jobs report was a double edged sword for the economy. While the growth in jobs and businesses is a step in the right direction, the market is further setting itself up for burst as the equities frenzy continues. The question is when will investor fears mount enough that there be a selloff. That remains to be seen.
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