From Cynthia Scott of OMC Financial Services:
Is the U.S. economy posed for a double dip after Friday’s job report?
**The jobs report caught investors off guard because only 18,000 private sector jobs were added in June; since March 545,000 additional people were laid off
**Many of the newly unemployed are from lay offs from the government sector which will probably continue
**Private sectors jobs are the engine of growth for the economy but employers are using technology more and they need fewer employees
**The weak jobs report renews fears of another recession since most investors anticipated growth in the second half of this year, but
>>Employees worked less hours
>>Employees hourly pay decreased
>>Employers are still reluctant to hire until they feel confident about the consumer
>>The U.S and Europe are burdened by debt
**July’s job report will indicate if the negative employment trend has changed
**Investors should be cautious and invest in quality companies to reduce their risk
