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Economy Continues String of Monthly Improvements

The economy added 243,000 net new jobs in January 2012 with a large private sector gain offsetting continued declines in public sector employment. The unemployment rate dropped to 8.3 percent from 8.5 percent the month earlier. This is the sixth month in row of improving employment.

Note that as of December home sales had also risen for five months in a row and anecdotal information we are aware of indicates that January home sales will show a marked improvement on a year over year basis and likely better than Decembers home sales rate as well. Whether housing is causing employment to improve or employment improvement is bettering housing sales is unclear and perhaps it doesn't matter much so long as both are heading in the right direction.