I did not see this coming

US job market on a rebound? This one I did not see coming at all.

The July report that just came out is actually pretty solid and looks even better once you break down the details. Manufacturing sector looked particularly good, which cut only 52,000 workers versus 131,000 in July. Probably has something to do with the auto industry.

Temporary workers fell by relatively small 10,000, which is solid as this tends to be a leading indicator for the overall labor market. All in all the unemployment rate actually fell to 9.4%, from 9.5% last month - but part of that reduction was due to reduction in the labor force base being reduced by 160,000 . Are these those who gave up on looking for jobs? You figure some of these would be offset when people decide to re-enter the job market.

This is MAJOR! We have not just a second derivative but a first derivative in reverse here! Am I a believer? No, not quite yet.