Saturday, April 4, 2015

More Weather Excuses Coming?

By David Gross

Friday's disappointing jobs report has many analysts asserting that weather contributed to the low numbers.  However, if this were really the case, wouldn't that have been factored into more forecasts?
Either way, cloud and data center providers really have little reason to bring this up, though mother nature often finds a way of reaching the oddest corners of the economy during earning calls.

It will be interesting to see the breakouts when the state and metro data is released.   Through January, seven states - Arizona, Florida, Nevada, California, Texas, North Carolina, and Washington - had accounted for over half of the country's 3 million new jobs over the previous 12 months.   There were no weather reasons for hiring to slow down in these locations during March.   Moreover, the Northeast Corridor, from Virginia to Maine, had only contributed 13% to national job growth over the year through January 2015.   So how could bad weather have accounted for total job gains that missed expectations by more than 50%?

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