00:00Rick great to have you on Friday Jobs Day and especially on one with such good news for the labor
00:06market and for the U.S. economy. What do you make of the non-farm payrolls.
00:12So you know about it. I mean a solid number. And I think you know I think one thing I
00:16always find it interesting when you get the top line. But then it's like markets like all the money is
00:21when you get underneath the surface.
00:22It's a fascinating report in a couple of different regards. When you actually look at it. So you know we
00:27know health care. You know we talked on the show all the time. Health care. Health care. Good again. Check.
00:32Local government was a big number this month. So it was about 50,000 jobs local government. So what do
00:37you do with that. You know interesting. That tends to move around obviously.
00:40But then when you get underneath the surface I find it fascinating. A couple of things. Construction was strong. Why
00:45is that. You dig in a construction. You look at it.
00:48Data. Non-residential construction is strong. Meaning AI build out which we know is coming which we know is happening
00:55and will continue to come. And then you look at underneath and you look at real estate.
00:59Real estate softer. And then you look at resi residential softer. And then a thing I also thought was fascinating.
01:05I think you mentioned the finance jobs softer.
01:08Then you dig into finance. What's happening. Insurance was pretty soft which is a trend you've been seeing. Why is
01:13that. It's AI sensitive.
01:15These are the areas and services where you're going to start to see the softness. You're going to start to
01:19see AI start to press on the areas where you can create some real efficiencies real productivity.
01:25So so net net solid number. Things like food and drinking. I don't know what was happening that created that
01:32sort of hiring. That was that was solid.
01:35You've got to factor that in your equation. So anyway point being I think you've got to factor you've got
01:39an economy that's doing quite well.
01:41You've got an AI. You've got a big cylinder of AI that you see show up in construction and you
01:47see that what companies are doing that are starting to implement.
01:51So you know and I think you've got to think about the Fed's reaction function. The data so far is
01:55solid and you've got to build that in your positioning.
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