Eye-popping job numbers rippled through Wall Street yesterday, but analysts pooh-pooh recession fears as premature. “I think it is important we take a deep breath before screaming ‘A recession is now around the corner!’” one expert says. Four thousand lost jobs may be the worst depletion in 4 years, but leave out government hiring and jobs were actually increased last month.
Fewer teachers in class explains much of the drop, but analysts say that their return this month may be balanced by jobs lost in the recent credit crunch. Despite such fluky factors, observers say that “the degree of weakness is too severe to dismiss,” and warn that “there are still shoes to drop.” A federal rate cut may help those shoes from hitting the floor, Reuters reports.