Slower pace of job loss indicates hope for economic recovery
It’s the end of the month, and that means that ADP is releasing its job loss report. For the month of September, the report is that 254,000 jobs were lost. This indicates a slowing trend, especially when one considers that the economy was shedding jobs at a rate of more than 400,000 a month at the beginning of the year.
However, even though the slowing pace of job loss is bringing some hope for economic recovery, it is important to note that the weak labor market will probably mean a gradual economic recovery. This is not wholly unexpected.
At any rate, the news was enough to give U.S. stock futures a bump earlier, and to help fuel an already robust risk trade. The optimism has faded by now, though. Economic data out of Chicago is causing investors to realize that the jobs data really isn’t that encouraging, and the stock market is tanking as the risk forex trade pares gains.
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