A strong gain in October jobs, alongside another monthly jump in productivity, further the argument that an economic recovery is underway. The country added more than twice the number of jobs as expected last month, as nonagricultural payroll numbers grew 126,000, adding to September's 125,000 increase.
Two months of surprisingly large gains in payroll numbers brought the unemployment rate to its lowest level in six months, at 6%. These numbers are supported by last week's report that first-time claims for unemployment insurance were near a 3-year low.
October marked the third monthly gain in jobs, following a nearly three-year contraction. Throughout the recovery, payroll related companies, such as Paychex (NASDAQ:PAYX) and ADP (NYSE:ADP), have enjoyed sharply higher share prices.
Gains won't be limited to payroll firms by any means, however, if analysts are right. Many are contending a coming economic expansion could be far-reaching and long -- at least as long as the typical 7-year cycle of expansion the economy has historically experienced -- because low inflation and modest interest rates usually conspire to make a recovery long-legged and sustainable.
Nobody has a crystal ball -- and another attack on the U.S., for instance, could change everything in an instant -- but we're happy to share this optimistic outlook. The Fool generally believes that living optimistically beats the alternative. Live optimistically, but invest carefully. Now, where can we buy some "I Survived the Crash of 2000" t-shirts?
