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Jobs

October 7, 2011 – 5:17 pm

A much better than expected jobs report this morning took the stock market from being down in the futures market to opening on an up note. 103,000 new jobs were reported for September, and August, which showed zero new jobs, was revised to show a 57,000 increase.

For those who wish to nitpick, 45,000 of September’s new jobs were because of returning strikers at Verizon. Also, the unemployment rate did not budge at 9.1%. Also even with that high unemployment rate number it is still underreporting as we all know.

Still the expectation was for around 50,000 new jobs and at least we are still producing jobs instead of shrinking them. The only real weakness in the report was a fall of 34,000 jobs in the government sector. Maybe that is not a weakness when you put it in context of our national debt level. Still those government workers that are taken out of the ranks of the employed reduces consumer spending so there is a tradeoff.

However you want to dissect the report it was much better than expected which was 50,000. The average work week increased and aggregate hours worked also rose with earnings increasing .2%, reversing a decline of .2% in August.

We need at least double the new jobs every month to begin to reduce the unemployment rate but it was much better than last month. At least that’s something.

Good Trading
Steve Peasley

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