We Are Sunshine

HEADLINE STORY: Labor Statistics Another Sign That Economy Is Turning

Tuesday, May 12th, 2009

MAY 12, 2009 — The federal government’s latest unemployment report may be a sign that the worst of the recession could be behind us, The New York Times reported this week.

2009-05-12-turnaround-copy.jpg“The American economy lost another 539,000 jobs in April and the unemployment rate leapt to 8.9 percent, the government reported Friday, yet the deterioration was slightly milder than expected, buoying hopes that better days are approaching,” The New York Times reported in a May 9 article.

The Times quoted Michael T. Darda, chief economist for the trading firm MKM Partners as saying, “The labor market is still very weak, but it looks like the most intense spate of weakness is probably behind us. Less bad is always a prelude to good. It’s going to take some time for this economy to get back on its feet, but we might be closer to the recession ending.”

Labor statistics generally are considered to be trailing indicators — not leading indicators — of change, as differences in employment levels come about as a result of changes in the economy. So changes in labor levels are among the last signs when there is an improvement in the economy.

To read the Times story click here.