Job Losses, Stock Gains?

Market rallies after big payrolls declines may be a sign that investors anticipate an eventual economic recovery after the bad news is out

On Fri., Dec. 5, the U.S. Labor Dept. reported the loss of more than a half million jobs during November (BusinessWeek.com, 12/05/08), the largest decline since the 1974-75 recession. In addition, October and September's jobs data were each revised sharply lower. Finally, the unemployment rate rose to 6.7% from 6.5%.

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