AM 1150 Kelowna - Radio Rallies & Reversals

The recovery in the US labor market has been frustratingly slow. While GDP and spending have clawed back much of their losses from the 2008 recession, there as been no recovery in the job market. The bleak job-creation picture has not only cast doubt on the sustainability of the economic recovery, it has become a political problem for the current administration and the Democrats; So what are the secular and cyclical prospects for the US job market?

According to Bank Credit Analyst: "There are no grounds to say that the US economic recovery cannot be sustained because there has been no job creation; however, on the one hand, employment growth should pick up soon, and if so would be a much needed catalyst that could compel equity prices higher; On the other hand slower growth, downward pressure on wages and an elevated unemployment rate may not necessarily be a bad combination for equity prices. The markets don't care about high unemployment. The market only cares about profits. So long as companies can expand profits in a modest growth environment, stocks usually do well."

GB