U.S. Job Losses Slowed, Unemployment Rate Declines Signaling Recession Ending

We also saw the prior month’s loss of 467,000 revised to 443,000 adding to the evidence that companies have slowed the pace of layoffs and could soon return to hiring. Manufacturing jobs declined by 52,000 which was nearly half the expected 100,000 as the sector has found support from increasing foreign demand on the back of the weak dollar and an improving global economy. One of the only sectors to see deterioration was retail trade as consumers continue to tighten their wallets, but a return to hiring in the broader economy could lift domestic demand which should be the catalyst for a sustained recovery. A 0.2% rise in hourly earnings could be a sign that demand for workers is improving, but it will also raise concerns over inflation. Those fears were evident in the subsequent price action as the dollar found support on the prospect of increasing interest rates. The Fed has been very clear that they will remove liquidity from the market as the U.S. economy recovers to avoid rising consumer prices and future bubbles.