South By North Strategies, Ltd.

Tim Duy sums up the national employment report for February.

Bottom Line:  Another good report, although still suggestive of the beginning of recovery.  In my mind, true recovery will come when the cyclical declines in labor force participation are further reversed.  At this point, there is no reason for the Fed to pull their foot off the gas.  On net though, the employment report does push back the timing of any additional easing.  The Fed will move to the sidelines while policymakers assess the level of slack in labor markets.  If the cyclical downturn resulted in sustained structural damage, there may be little slack.  But if an influx of returning workers puts a floor under the unemployment rate, the Fed will have more work still to do.