The U.S. lost 95,000 jobs in September, much worse than the anticipated drop of 5,000 that was the median estimate of economists surveyed by Bloomberg News. The government continues to cut temporary Census hires and the private sector's employment growth is lagging.
This news tells me that the much-anticipated economic recovery is still faltering. Fiscal support from government stimulus quickly wore off and the unemployment rate, sitting stubbornly at 9.6%, will get worse before it gets better.
Interestingly, while the economy remains deep in the tank, the stock market has performed well. The Dow Jones Industrial Average (DJIA) is nearing 11,000 and stocks' reputation as a leading indicator may indicate a quicker economic recovery than some economists are forecasting. A more likely explanation, however, is that the round of cost cutting that companies initiated in response to the recession has lead to higher earnings all around and subsequently, an expectation for higher profits once these leaner companies start growing again.
Have a great weekend! Enjoy the football games. Geaux Tigers!