Friday, March 4, 2011

The Employment Picture Has Finally Turned the Corner

The employment reports for the last few months have been very frustrating, coming in at very low numbers, especially in comparison with the other macroeconomic data that showed increasing personal consumption expenditures, very strong manufacturing and very strong service sector growth. Now we have (finally) good news on the employment front.

From the BLS:

Nonfarm payroll employment increased by 192,000 in February, and the unemployment rate was little changed at 8.9 percent, the U.S. Bureau of Labor Statistics reported today. Job gains occurred in manufacturing, construction, professional and business services, health care, and transportation and warehousing.

Better yet:

The change in total nonfarm payroll employment for December was revised from +121,000 to +152,000, and the change for January was revised from +36,000 to +63,000.

Yet again we have an upward revision to previous employment numbers.

This, in conjunction with yesterday's initial unemployment claims data -- which showed initial unemployment claims dropping to 368,000 -- indicates the following: the employment situation has finanlly turned the corner.