Wednesday 30 March 2011

Extremely Good Signs for the Labor Market

The recent high growth in company profits points that the job market in the US is to improve significantly.

"... economy-wide corporate profits rose 9.7% annualized in Q4 2010, which was roughly twice what we were expecting. Since the recession ended, profits have grown at a sturdy 27% annualized pace."

and

"... profits per private sector employee are at an all-time high-well above their pre-recession peak."

The correlation is usually two quarters apart so mid-2011 should mark a hot labor market.

Source: http://www.businessinsider.com/corporate-profits-vs-labor-market-2011-3

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