June 7 - Wells Fargo's Chief Economist John Silvia says the jobs shows more people are getting back into the job market- and its about time. Bobbi Rebell reports.
The jobs report is -- a 175000. New jobs were created last month that is more than expected. Get a letter rate went up a little bit let's break it all down with wealth artist chief economist John Silvia welcome. Thank you are so what was your first reaction to this report. Confirmed that the second quarter GDP gross domestic product numbers will be more modest slower than in the first quarter. And then second of all I was disappointed to surprise for me was in manufacturing. Now we lost jobs three months and a route on that was disappointing me but also somewhat consistent with some of the manufacturing surveys we have seen. You're also disappointed with the government jobs. -- government jobs foul -- not terribly surprised at that but again I think that's pocket possible. Well what we've seen and not only federal government jobs but also state local jobs declined. That's he's been ongoing restructuring. And that sector of the US economy. Kind of -- Bright side of its pick up and in the unemployment rate about over 400000 people sort of started looking for jobs gave you talk about why that's significant. Yes -- that's kind of intriguing what we see is that increase in the participation rate. Which I think was primarily responsible for the rise in the unemployment right. Not traditionally. As the economy improves people see that improvement and they wanna get back -- because now they expect that maybe this a job for them. What was saying then is maybe the first signs of this pattern it's been several years and and we had expected you know some of this patent to show up -- here. In the US economy may be not how it is showing up. And that's a very good sign that's consistent -- higher consumer confidence -- consist -- -- modest job gains. And there are so many worries ahead of this report in the stock market does this now calm things down a little bit. Well for me I think that definitely comes down. The attitude and the -- on two different ways. One odds that -- wrist sustained job about that this economy isn't slowing down dramatically. And then second DR Clark right telling me basically that the Fed is not in the game tape -- their monetary policy ease anytime soon. Are the Fed meets next June 18 any chance that it triggered a fairly. Tapering anytime soon but at least maybe some change some nuances in the language that they isn't really see any any different. That any different language from them. I think as the overall statement from the fact no I don't expect any significant change there will be voices still be comments about. You know we've stayed too long we've done to lunch. But I think and the overall statement that's not gonna come -- -- -- -- -- staples simply sank. They see things -- continuing to move along. Modest improvement low inflation I think they're gonna stay with their quantitative easing program but right. Are so finally at what an accurate Q in the economic recovery at this point looking forward. Well I think the key is one continuous improvement in the credit. Financial background to the overall economy. I'm bond -- strong. Bank lending is strong both residential and it's small business the equity market continues to -- so I think the biggest you know. -- covering fundamental. Is the improvement in the credit markets I think that overall this seems to be a little less stability on the global scale. So export orders yours not to improve our exports in general should sought to improve and -- battle stabilize the net export number. That we look at in terms of its contribution to overall wealth. I'm so those -- the two areas that I think really. I've behind the scenes. Improving. And making the outlook for the economy stronger going -- Aaron we'll keep watching thank you so much there. Thank you -- thank you -- artist on Sylvia and Bobbi -- as a writer.