El-Erian: Jobs Report Is Good News for Economy

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May 2 (Bloomberg) -- Allianz Chief Economic Advisor and Bloomberg View Columnist Mohamed El-Erian discusses today’s U.S. jobs reports on Bloomberg Television's “In The Loop.” (Source: Bloomberg)

How strong this report was?

Yes, i am pleasantly surprised.

It is nice to be with you on a day when you get a strong report.

Ritually across the board.

The us is good news for the u.s. economy.

-- virtually across the board.

This is good news for the u.s. economy.

Is the lack of wage growth a big concern for you?

There are two elements that were not good.

One is wages and two is a decline in the participation rate that we have not seen since 1978. apart from that, not only the headline numbers, how many jobs were created and the unemployment rate, but the elements that speak to the most vulnerable segments of the population -- if you look at long-term unemployment, that came down to under 3.5 million.

We have not seen that level for a while.

If you look at teenage unemployment, that came down to under 20%. we have not seen that level for a while.

It is good to see the strong numbers.

It is good to see the unemployment rate come down.

It is even better to see the most vulnerable populations of the segments better.

Would need to do earnings and that is the next step in the progression.

-- we need to do earnings and that is the next step in the progression.

Aren't these major exceptions?

Those are two pretty big exceptions.

They are.

They are big exceptions.

The good news is that the increase in jobs, if you add also the revisions, was also really solid.

It is good news.

In fact, why isn't the market reacting more?

Because it realizes that this has an impact, may have an impact on the fed.

I do not think it will.

That is what the market is worried about.

It is such a strong report that the market is worried that the fed support may not be there.

You say that you do not think it will.

But where is there any credibility that this could affect monetary policy?

If you thought the fed was pursuing one objective of the mandate, which is unemployment, you would get worried they would start tightening.

However, the fed is pursuing two objectives.

The other is an inflation rate of 2%. we are nowhere near that.

It is important for the market to take account of the unemployment picture and inflation picture.

Hang on for one moment.

I want to staleness jobs conversation.

-- i want to stay on this jobs conversation.

Ralph nader joins us.

He is a longtime advocate of consumer safety and has written a book called "unstoppable." it just came out this week.

Thank you for joining us.

You say we need to bridge this partisan divide and come together to create policies beneficial to americans across the board.

What bridge can we build to create job policies?

It has already happened in

This text has been automatically generated. It may not be 100% accurate.


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