The Good News About the Weak Job Market

In my estimation, the market continues to underestimate the health of the U.S. economy. To be sure, this recovery still ranks as the worst in modern times. The unemployment rate remains very high. The labor force participation rate remains very low. The number of people working today is still 3 million less than at the peak in early 2008. It's no secret that the economy should be doing a whole lot better. However, the most important thing is what is happening on the margin.

WASHINGTON — A private survey shows that U.S. businesses added fewer workers in November, in part because Superstorm Sandy shut down factories, retail stores, and other companies. Payroll processor ADP says employers added 118,000 jobs last month. That’s below October’s total of 157,000, which was revised lower. Mark Zandi, chief economist at Moody’s Analytics, says the storm cut payrolls by 86,000 jobs. Excluding the effects of the storm, “the job market turned in a good performance during the month.”

The Canadian economy managed only meager job growth in April, following a big drop in employment the previous month, as the jobless rate remained at 7.2%. But while the 12,500 new jobs look good compared with March’s job carnage (54, 500 jobs lost), don’t get too excited, say economists. The job gains — mostly in the public administration and manufacturing sectors — are mediocre and reflect a sluggish economy.

IN THE first week of September of this year, the Bureau of Labour Statistics reported that amid the wild gyrations of August the American economy added precisely zero net new jobs. Job creation had apparently ground to a halt, and a double-dip into recession seemed more likely than not. Relative to those dismal expectations, the labour market's recent performance has proved a pleasant surprise. Yet the economy has a very long way to go to return to full employment, and it's getting their painfully slowly.

WASHINGTON (Reuters) - U.S.

AMERICAN employment put in a respectable performance in July. Non-farm payrolls rose 117,000, or 0.1%, and the unemployment rate edged lower to 9.1% from 9.2%, both better, but not dramatically so, than Wall Street had expected. Any other time this would have been cause for mild satisfaction. In these grim times, it constitutes a massive relief bordering on joy.

The state's unemployment rate edges down to 11.7% from 11.9% in September in the third straight month of job growth.California employers added more than 25,000 workers to their payrolls in October, the third straight month of job growth, easing fears that the state's economy might tip back into recession.