A breaking point for employment? Just a second
The other day, the Economist had an article that suggested that productivity gains in the United States had reached a limit and businesses were going to have to add workers if they expected to keep going. Sure enough, the BLS announced today that the private sector added a more-than-expected 200,000 jobs and the unemployment rate dipped slightly to 8.5%.
But an inordinate number of those jobs were couriers and messengers (even adjusting for seasonal effects) which are unlikely to endure now that the Christmas season is over. Meanwhile, over at Zero Hedge, they're insisting that the BLS is cooking the numbers by adjusting down the labor participation rate: "Real jobless rate is 11.4% with realistic labor participation rate."
So it's "hooray" with a lower-case "h." Let's see what happens once the holiday effect wears off.