....the Republicans are foched.


Surprisingly strong jobs data signal turning point

By JEANNINE AVERSA (AP) – 32 minutes ago

WASHINGTON — It's the clearest sign yet the recession is finally ending:
Employers laid off far fewer workers in July, the jobless rate dipped
for the first time in 15 months and workers' hours and pay edged upward.
Those are the kind of figures that could give Americans the
psychological boost necessary for recovery to take root after the worst
recession since World War II.

A net total of 247,000 jobs were lost last month, the fewest in a year
and a drastic improvement from the 443,000 that vanished in June.

The Labor Department's report Friday showed that the unemployment rate
dropped a notch to 9.4 percent in July, from 9.5 percent the previous
month. Together with slight increases in the average workweek and wages,
the new figures suggested the economy is in a transition from recession
to recovery.

"The worst may be behind us," President Barack Obama declared. "Today,
we're pointed in the right direction."

Still, the job market remains shaky. A quarter-million lost jobs are a
far cry from the employment growth needed to put the national economy on
solid footing.

When the economy is healthy, employers need to add a net total of around
125,000 jobs a month just to keep the unemployment rate stable. And to
push the jobless rate down to a more normal 5 percent range, it would
take much stronger growth — at least 200,000 new jobs a month.
Economists say it might take until 2013 to drive down the unemployment
rate to 5 percent.

Yet the improvements in July could give some businesses the confidence
to hire again — or at least not to lay off more workers. And consumers,
less anxious about losing jobs, could respond by spending more freely.

"If people and companies think the worst is behind them — and it
probably is — their confidence will be restored," said Richard Yamarone,
economist at Argus Research. "That confidence can feed on itself."

On Wall Street, the report propelled stocks higher. The Dow Jones
industrial average jumped 114 points, and other stock averages also gained.