Tomorrow's jobs report will report on the unemployment numbers for the month of February at 8:30AM. This is the most important jobs report in a few months.
- We are coming out of the seasonal hiring season of the holidays
- Last month's report was considered by many to be a jaded report because of the record storms in January.
- This report will be so important for the stock market, the interest rates, and the political policies towards jobs creation.
If we as a country don't start creating at least 200k we are going to be in big economic trouble because we have used up much of the stimulus money in the economy and fed buying programs ending in June. No one can doubt that the stimulus package has saved us from certain depression levels in the economy, but the key to this whole throw money at everything, is going to be the exit strategy. Can we back off the government punch bowl without creating spikes in interest rates or too much cut back in spending? The Republicans won the house because they want to modify spending, but we all know that can't happen. If we don't raise the debt ceiling we will default on the interest payments on our debt and loose our AAA bond rating. Our economy runs on our bond rating whether we like it or not. Just like getting a mortgage it's a lot easier with a better credit score. We need other countries to buy our debt and they need us to buy their products.
- Companies have learned to be more profitable with less resources and people power than they did prior to 2008
- More and more machines are doing the work of people, so the need for simple labor in factories is dwindling
- With high unemployment comes a weaker housing market which is still the back bone of the country
Tune into the news tomorrow at 8:30 AM tomorrow for the live release of the unemployment numbers for February and keep your fingers crossed that we are over 200k in new job creation. If we don't hit that number look for a big pull back off of today's huge stock market up swing.
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