Brian Sozzi Discusses July Jobs Report

Brian Sozzi of Wall Street Strategies is out with a research report on the July nonfarm payroll report, which came in better than expected this morning.

The July Nonfarm payroll report came in at 117,000, on expectations of 84,000. The unemployment rate fell to 9.1%, and the private sector rose 154,000 jobs.

In the report, Sozzi writes, "No doubt it was great to: (1) have job creation in July despite the economic topics of the day; (2) that the headline print flipped the bird to market mavens and traders in the pits. However, the so-so areas underscore the anemic DNA of the current "expansion." I use that term lightly because the market is sending a message that we may already be in Great Recession Part 2."

He notes that the long-term unemployed remained unchanged at 6.2 million, the temporary employment remained unchanged at 8.4 million, and that manufacturing jobs grew by 24,000 in the month. 37,000 public sector workers lost their jobs in the month of July.

Sozzi concludes the note by saying, "The multiple job figures are very interesting as well, and could be looked at in two ways. One, people are working two jobs because their wages from a primary job are subpar, and yet they still can't make the extra trip to Family Dollar. Two, people are working two jobs to rebuild savings and 401ks. And, of course, how could I leave out the self-employed. Do I even need to describe the barriers to entry, financially and psychologically, to opening your own business presently?"