Stronger labor growth than the headlines suggest . . .

The reported October growth in employment seemed lackluster.  Only 80k new jobs were reported by the BLS Establishment Survey.  The survey included private sector and public sector jobs.  There is a different story emerging from the BLS Household survey and the private sector.  The Household Survey, from which the unemployment rate is calculated, has gained 1 million jobs in the last 90 days!  That’s the most since Dec. 2006. It is very encouraging to see that size of gain at a time when consumer and business sentiment is as abysmal as now.  Businesses are hiring because they have to, not because they want to.  The private sector jobs, as measured by the BLS Establishment Survey, have grown by 367k in the last 90 days whereas the public sector has lost 25k jobs over the same period.  The chart that follows below is derived from data that comes courtesy of Monster.com – the online employment site (here).  It illustrates an 11% gain in job postings since October last year and a level that is the highest since the October of 2008.  Importantly for our portfolio, the Monster data indicates there is 27% growth in the jobs for the “information” sector.  Jeb Terry, Sr. Nov. 6, 2011

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