Non-farm payrolls increased by 290,000 in April, much more than the 180,000 expected by economists. March figure was revised from 162,000 to 230,000. Even after subtracting the temporary census jobs added in April, the economy has started to add substantial amount of jobs (about 224,000), mostly from the private sector. This is not surprising anymore given the robust earnings reports from retailers to hotels to car makers.
The recovery is no longer jobless. NBER should be comfortable to declare that the Great Recession was over.
Unemployment rate will remain high near 9-10% for some time as more workers now become active in searching for jobs.
We expect the jobs numbers to accelerate in the coming months. We need 300,000 or more per month for the rest of the year.
The news did little to help the market which appears to continue to be absorbed by the fear of Greek contagion. It's a real opportunity.
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