The jobs report came in much stronger than expected. The economy “only” lost 247,000 jobs last month and the jobless rate actually ticked down from 9.5% to 9.4%.
Everybody is pleasantly surprised, so Wall Street is happy today. As you dig into the numbers, 55,000 new government jobs and slower losses in service jobs stand out. The fact that ADP reported more job losses is a bit disturbing. The 0.1% drop in unemployment is statistically insignificant, but welcome nonetheless. Overall, this is a huge surprise and provides hope for a sustained economic recovery.