As Goes Employment, So Goes Equity Markets?
Temp staffing, the precursor to NFP gains has reached the highest levels since 2008 and is accelerating indicating further NFP gains into Q1 2015..
Additionally the Gallup job creation index is at the highest level since its inception:
Job openings in the U.S. climbed to a 13-year high in August as employers gained confidence about the outlook for demand in the world’s biggest economy.
The number of positions waiting to be filled rose to 4.84 million in August, the most since January 2001, from a revised 4.61 million the prior month, the Labor Department reported today in Washington. Hiring and firings cooled, while fewer people quit their jobs.
The upswing in openings adds to signs of sustained progress in the labor market. The figures form part of a package of data Federal Reserve Chair Janet Yellen and her colleagues use to measure the labor market’s health, which will help determine when the central bank will to begin to raise its benchmark interest rate in 2015.
ASA Staffing Index and Gallup Job Creation Index move higher. As long as jobs growth continues, economic Demand will outstrip Supply. It is a very simple equation.
The weekly economic indicators show that job creation continues to trend higher.
As goes employment, so goes equity markets. ($SPY)