The New York Post has a story that casts doubt on the 288,000 newly created jobs that were flaunted in April:
Without those extra 117,000 make-believe jobs, the total growth for April would have been just 171,000 – sub-par for an economy that’s supposed to be growing at more than 4 percent a year, but right on the pros’ targets.
Take away all 270,000 make-believe jobs and, well, you have the sort of pessimism that the political pollsters are seeing.
If I was the suspicious type (and if I thought Washington was smart enough), I’d suspect a nasty motive behind the sudden surge in these mystery jobs. But for now, let’s just acknowledge their existence.
The ramifications of this are not good at all, large jumps in job growth can trigger the Federal Reserve to raise interest rates when a recovery is not properly in place. Rising interest rates and a lackluster employment rate is a causic mixture, especially leading up to a presidential election.