This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Jobs Doom or Boom for Obama? Neither

"What the vote equation suggests is that if the economy has been growing at the time of the election, even though the level of the unemployment rate may still be above full employment, then voters take that as a positive sign," Fair said.

Conceivably, Romney can't continue to ignore or brush aside declining unemployment rates, as it is a crucial component voters use to make a presidential pick. Conversely, the Obama campaign can't rely on one or two months of better-than-expected results to win the majority of the electorate.

"But it's not just one month, it's the growth rate over the whole year that matters," Fair said. "So, if this kind of growth rate continued over the entire year, or up until the election, then of course that would be a positive for Obama , but just one month is not enough to be able to say too much."

Returning to the hard jobs numbers, it's also important for voters to dig further to get a fuller sense of what they mean.

Labor-force participation rates, for example, have an effect month to month. After two successive surprise months, (December unemployment dropped to 8.5% and then January unemployment dropped to 8.3%) Weiman said it could motivate those people who haven't actively sought employment to re-enter the market. This influx could cause an uptick in unemployment numbers as more people would have leaped back into the work-finding process, thus inflating the total number of employment seekers, while the same number of job openings would have remained the same.

"What you want to say is that there is job growth, and that's important sign of economic expansion, but is it robust enough to start whittling away at the -- it's like this huge stock, huge number of unemployed or underemployed individuals," Weiman said. "And the answer is it looks like no, because December you still saw people leaving the labor market."

Working age adults not participating in the labor force in January, increased by 88,000 . Translation for Obama's re-election hopes? Wait and see.

-- Written by Joe Deaux in New York.

>Contact by Email.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs