GDP and Employment

This week we obtained both Q3 GDP data and Employment data. We review them here.

We start with GDP %. Note that consumption is becoming a greater amount as compared to investment. Government spending as a percent seems quite flat.

The actual values are above. We can see a rise in consumption which is driving GDP. Government is fixed, with some slow real growth.

Thus there is a strong sense of GDP growth, albeit slow.

Now for employment. Remember that last month there were no reports.

Above we have employment and population. Frankly it appears that the gap between total employed and the population appears to be closing. Especially when we look back some four years ago.

This also shows the gap improving. But we are still at 43% of the population employed as compared to 45.2% in June 2008. That means that based upon that rate we are still at 10% unemployment not the 7.3% stated by the Government.

The above shows this difference. Employment is not improving as much as it should or could. That is reflected in the GDP changes as well. We do not expect any improvement in the near term until a change in administration.