The Challenger job cuts for February was the first positive number we’ve seen in over two years, with a 20% reading. The prior reading was -46.1%, which is a far cry from 20%.
Perhaps we are starting to see the turn around in the jobs front in this country, which would be a welcomed sight for all Americans, employed or not.
This morning, ADP reported a better than expected number for February private payrolls, reporting a gain of 217,000 jobs versus the estimates of 165,000.
Warren Buffett also believes that unemployment is on a turn around, and could hit as low as 7% by 2012.
“There is a resiliency to the American system,” Buffett remarked. “It does work. It sputters from time to time, it will sputter from time to time, but you don’t want to get worried.”
Buffett said that he believes hiring at Berkshire Hathaway (NYSE: BRK-A) will pick up this year, especially in the tank car industry, which makes rail cars used by companies CSX, Union Pacific and Norfolk Southern. He said that the railroad business is about 60% of the way back, which is extremely positive on the long term outlook for the American economy.
It’s very possible that the long term unemployment rate in America will drop sharply, faster than most expect, as productivity gains have largely been made, and hiring will start to begin.
Ronald Reagan made the “Morning In America” speech popular years ago.
It looks like that time may be happening again, this time on the jobs front.