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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