Non-Farm Payrolls Signals Recession is Over

This morning's non-farm payrolls report is eliciting smiles across Wall Street as the hemorrhaging of jobs comes to an end. Only 345k Americans lost their jobs last month, signaling that the recession is over. Although the jobless rate breached 9% for the first time since 1983, hitting a 25 year high of 9.4 percent, there is no question that the labor market has hit a bottom.





We have been seeing improvements across the economy and the much better than expected labor market report only solidifies our overall belief that is the worst is over. Although this is the only type of economic environment where anyone would consider a loss of 345k jobs a good thing. The report is also consistent with the improvements that we have seen in jobless claims and the employment component of service sector ISM. Slowly but surely the U.S. economy is turning higher and the moderation of job losses in May indicates that the momentum is to the upside.

FX 360 - Non-Farm Payrolls Signals Recession is Over