Could jobs power the market higher? Chart of the Day shows jobs slowly trending higher

Sometimes once information is widely known, that's when it's about to change. Could that be the case with the (un)employment rate? The stock market's wild swings the past couple of days were related, in part, to widely differing perceptions of the job market. So it's a good time to look at the big-picture chart of (un)employment produced today by the folks at "Chart of the Day". My opinion - for what it's worth - is that it shows a picture of consolidation over the past decade that supports the number of jobs increasing for another solid move up. Especially when you see the lower indicator window that shows how far away the rate has become from the regression mean. Well, take a look and see what you think!

Chart of the Day - Jobs slowly trending higher
Today, the Labor Department reported that nonfarm payrolls (jobs) increased in April for an eighth consecutive monthly gain. Today's chart provides some perspective on the US job market. Note how the number of jobs steadily increased from 1961 to 2001 (top chart). During the last economic recovery (i.e. the end of 2001 to the end of 2007), job growth was unable to get back up to its long-term trend (first time since 1961). More recently, nonfarm payrolls have pulled away from its 40-year trend (1961-2001) by a record percentage (bottom chart). In fact, the current number of US jobs was first reached in early 2000.

Notes:
- Where's the market headed? The answer may surprise you. Find out right now with the exclusive & Barron's recommended charts of Chart of the Day Plus.

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May 07, 2011 - Kentucky Derby
May 08, 2011 - Mother's Day
May 11, 2011 - Cannes Film Festival begins (ends May 22nd)
May 17, 2011 - French Open tennis tournament begins (ends June 5th)

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