Even More Keynesians Spot the Upturn

Business Week reports:

The nation added 80,000 jobs...it was the 13th consecutive month of job gains Fears of a new recession that loomed over the economy this summer have receded.

The unemployment rate nudged down, to 9 percent from 9.1 in September.

"Those are pretty good signs," said Michael Hanson, senior economist at Bank of America Merrill Lynch. "We're hanging in there."...

Economists pointed out other bright spots in the unemployment report:

-- Average hourly wages rose 5 cents a week, to $23.19. More pay for workers means they have more spending power in the economy. Many businesses are waiting for customer demand to pick up before they hire in big numbers again.

-- August and September turned out to be much better months for job creation than first thought. The nation added 104,000 jobs in August and 158,000 in September, a total of 102,000 more than earlier estimates. The August figure was first reported as zero.

-- The number of people considered long-term unemployed, meaning they have been looking for work for at least six months, fell by 366,000, to 5.9 million. That is the fewest since April.

"Overall, while this report is not good enough, several key numbers are now moving in the right direction," Ian Shepherdson, an economist at High Frequency Economics, a data analysis company, told clients. He said the prospects for the next few months "seem to be improving."