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Landcolt Capital managing partner Todd Schoenberger and Wells Fargo senior economist Mark Vitner weighs in on jobs data in November
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Talking about -- that of that.
Employment rate dropping the seven point seven per -- -- 126000.
New jobs added.
Far better.
Than expectations but working behind that number.
Is the fiscal Clinton if congress doesn't -- jobless unemployment benefits would go from -- seven a three week maximum got a 26 weeks.
Could that forced a spike in the jobless rate again for 2013.
Joining us now Todd Schoenberg -- It is harder work better.
Plus Fargo senior economist talk first CEO I don't -- the world but the numbers that came out today but also you've got this issue of unemployment benefits -- what that does to the economy you worry.
Absolutely you bet on worried look -- we leap off the fiscal cliff Cheryl you're looking at a minimum up 500000.
Jobs eliminated.
And I'm not talking about low wage jobs either I'm talking about the high five digits to low six digit jobs that's -- -- impact the overall economy.
It's not just here in the United States says -- it's also the global economy -- at the start looking at some of those multinationals a trade on Wall Street.
They're all gonna be -- -- you know mark you've had some on a Democrat president Harry Reid others say they -- and actually see unemployment extended for 2000 Turkey thirteen -- argue.
That it's gonna hurt the economy if we don't extend unemployment.
Do you agree with that assumption.
I don't think that's true because.
Extended unemployment benefits and the winding down on a state by state basis for quite some time it doesn't seem to be hurting the economy I don't see how they're going to be able to extend them I really don't not not.
Not if they're going to come close to that to come to some sort of agreement on the fiscal -- we can't increase spending we're trying to for trying to rein it in.
And it's I'm not that worried about it there are some distribution -- -- -- A lot of the lower end retailer some of the dollar store some of the drug stores have been big beneficiaries from the extended unemployment benefits in their business like the slow.
You know let me ask you something -- you brought up the issue of the of the about a retail jobs but you -- -- those are lower paying lower wage.
Jobs -- -- seven -- -- been -- market doesn't wanna see nice to see jobs added but not the right type of jobs.
That's right up 57% of the jobs that were part of today's report.
Our of those low income variety jobs hospitality leisure retail temporary jobs as well.
We don't wanna see -- -- -- what we need to see are the really high wage jobs because there's of the jobs that are going to sustain a growing economy they're gonna be able to fight big ticket items such as cars.
-- house maybe even some durable goods items.
That's what you really need to really grow this economy right now we haven't heard any strategy right now out of Washington all we're hearing about our extra taxes.
You know I wanna play the -- for you don't want to -- disarray and react on the other side yeah house speaker John Boehner despite an hour ago he was asked.
About his phone conversation.
Yesterday with the president regarding the -- here's what he said.
A phone call us.
-- -- but was just more of the same leave the conversations with the staff are different just more of the same.
It's time for the president to be serious come back to us with a counteroffer.
OK so mark out -- we're nowhere near a deal on the fiscal club that's pretty obvious now what does that stadium.
Well there's an awful lot of uncertainty in the economy we we do a survey of small businesses and it's it's -- the Wells Fargo we contract that was on.
And and in the fourth quarter our small business or felt like when he -- it was the biggest drop in four years.
It and it's not so much that businesses are worried about the economy today -- see it as the conditions as being normal somewhere between normal and bad.
And they but what's really disconcerting is -- what we see about the future accomplice in the futures really follow offer them much more worried about future revenue growth.
And also worried about house could impact their cash flow that the -- in worried about the the cost of regulation.
And and and it's result many are putting off hiring they're putting off investment decisions and and collectively that takes a huge told the account.
You also have a wave of anticipation rate that's another issue that's also an economic issue -- and that's -- -- -- A separate from the fiscal -- -- -- the same time 229000.
People not looking for work fewer not looking for work for the month of November I mean -- giving up factory.
-- -- -- It's TH and it has social implications -- it's right now.
You have zero confidence firm from any any of the consumers anybody out -- work.
Plus she start look at today that the top we're talking about the extended unemployment benefits if you lose your job think about -- Citibank employs 111000 of that.
If they lose -- -- which they are 111000 -- but the majority of them -- find work until it's when he fourteen.
It's hardly demoralizing right now so going forward eighty do leap off this -- which I believe we will.
You have to suspected you're gonna have a bit less confidence in the markets not just -- global yet but obviously here domestically.
At right now Washington is insane anything with any type of a strategy -- job creation.
That's always -- -- -- say nothing and -- night news conference -- punch dumber.
Mark better gentlemen thank you very much appreciate it thank you do with it.
