NFP Jobs Data Manipulated – All Paid With PPP Loans

by govttrader
Fri, 06/05/2020 – 10:10
The headline non-farm jobs data was so blisteringly good (+2.5 million jobs), market participants were left scratching theirs heads, wondering “V-Shaped Recovery” ??

The big question is, how did all the economic forecasters “forget” about the affect of PPP loans on the jobs data?

Everybody seems to have forgotten about the PPP loans. 20 million private sector “employees” went from unemployed and collecting unemployment benefits, to employed and getting paid with PPP loans/grants, are so are now being paid by the US Govt via these PPP loans (just started being doled out in May), and being reported as “employed” (whether they are working or not). Without the PPP loans, those 20 million “employed” would go “poof” and become unemployed.

The majority of market participants just accept the headline data and don’t bother to dive into the details. It will take 1-2 days (at least) before this type of “nuance” becomes more widely known.