The April 2009 Jobs Report came out today and said that nonfarm payroll employment continued to decline in April (-539,000 – it was negative 699,000 last month), and the unemployment rate rose from 8.5 to 8.9 percent. Since the recession began in December 2007, 5.7 million jobs have been lost. In April, job losses were large and widespread across nearly all major private-sector industries. Overall, private sector employment fell by 611,000.
So is there any good news in any of these numbers? Yes there is. The chart below shows what is seemingly true, that we have hit bottom and are on our way back up. That said, the bottom we hit was so low that even improvements won’t look much like an improvement for awhile. Something else that cannot be ignored is that there will probably still continue to be some layoffs in certain sectors.
I do believe though that there will start to be some uptick’s in manufacturing as companies begin to have depleted inventories. When the recession started, manufacturing took the biggest hit the fastest which means they will be a good indicator to watch for real evidence of economic turnaround and consumer confidence. Manufacturing also drives our GDP so for our economy to truly start growing again we need to be back making and assembling products to sell (and then you need to go out and buy them).
I never thought it would feel good to see better negative numbers.
Click on picture to enlarge.