Job Market Is Healing, But Too Slowly

Employment in this economic environment has been a very sensitive subject for politicians, investors and most importantly job-seekers. The economic issue is first and foremost on the minds of many Americans, but it is also causing political upheaval in Washington as the slowing of job losses can be used as an argument only so many times before political capital and goodwill is eroded completely.

Jobless claims data showcased that first-time claims came in at just over 500,000, which is the fewest since January of this year. The four-week average for first time claims, about 520,000, is off 20% from peak claims levels. For October, job losses numbered in the 190,000 range, well off peaks of 700,000 during this recession. Accumulation is a big issue, as jobs lost since the recession began number more than 7.3 Million, and despite government figures that point to job creation/savings of about 600,000 from the stimulus package, it still is a difficult data point to swallow, for those trapped without employment, making the march for continuing jobless benefits.

The markets have reacted bearishly to the jobless claims, but overall losses have been muted, with the major market trackers off about half a percentage point. Materials and Energy sectors were leading the decline, with Financials barely trailing for the prize of Thursday's worst performers. With the S&P holding levels around 1100 points, the market has been pricing in recovery during its recently extended rally. Investors, to keep this rally going, are going to need to see tangible upticks in demand and that means some tried and true job growth going into 2010. If anyone is to keep this market going next year, there will need to be jobs to build on the economic recovery GDP figures have already suggested is here.

Comments

[Papaswamp:]

I couldn't disagree more. Job losses continue to increase. Read the NSA numbers not the government manipulated ones.

10/17/2009 460,430
10/24/2009 494,394
10/31/2009 482,542
11/7/2009 529,446

Nov 13 08:14 AM