May 2013 BLS jobs report = good news.

The May BLS unemployment report came out today, and as if to buoy the economy from Wednesday's ADP report of 135,000 jobs, the government report showed a gain of 175,000 jobs in May with 420,000 people rejoining the labor market in search for jobs.  As a result, even though the number of people employed had increased, the unemployment rate moved up 0.1 percentage points to 7.6%.  As they say, optimism drives people to get back into the workforce.

Good news, right?  Yes.  But that was yesterday.

Going forward we're going to hit the full blow of the sequester cuts.  To reiterate, the federal government had already been cutting jobs for years, and you can expect the federal government to continue to drag down total GDP and employment numbers.

As you can see, federal jobs have been shrinking in real numbers and as a percentage of total non-farm employment.  This is going to be a real problem as a backlog of approvals and reviews will grow concurrent to growth in the private market.