151,000 jobs created in October

The Department of Labor reported this morning that the U.S. economy added 151,000 jobs last month.  Most importantly, the private sector added 159,000 jobs.  Additionally, September’s data were revised significantly.  The initial report for the ninth month of the year showed that 95,000 jobs were lost.  That figure was revised to only 41,000 jobs lost.  Meanwhile, the unemployment rate stayed put at 9.6%.

Analysis: This is encouraging news, even if not amazing news.  For me the most important portions of the report are that the private sector is finally chipping in job adds.  Most of the employment strength (if you can even call it that) this year has been in the government sector, specifically U.S. Census Bureau jobs.  For the U.S. economy to snap out of its funk though, it needs businesses to create new jobs.  I will closely monitor future reports to see if this becomes a trend, and not just a data point.

The next piece of encouraging news is that September’s figures were revised massively upward.  Even though there wasn’t job growth in September, that the loss was half of what had previously been estimated means something important.  Back in the midst of the recession I highlighted the fact that when the estimates that these statistical bureaus rely upon bounce all over the place, that usually means that there is a transition point happening.  In this case, the September revision likely means we are transitioning upward.  That’s a good thing.

Importance grade: 10; ’nuff said.

I hope that each of you has an excellent weekend!

Jason