Concerns are rising that the economic rebound is stalling, but a strong jobs report on Friday would go a long way toward assuaging those fears.
Conversely, a report showing private employers failed to create many jobs in June will amplify worries that the recovery is weakening and won't be strong enough to put many of the 15 million unemployed back to work anytime soon.
"The economy is losing some momentum," said Ryan Sweet, senior economist at Moody's Economy.com. "We need to see private hiring really accelerate."
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A gain of 112,000 in private payrolls would signal the recovery is on track, economists said. With added jobs boosting incomes and giving consumers more money to spend, the economy would be able to keep growing even as the impact of government stimulus programs wanes.
Still, a gain of about 100,000 jobs is barely enough to keep up with population growth. The economy needs to create jobs at least at twice that pace to quickly bring down the jobless rate.
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Most notable was a rise in the number of people filing for unemployment benefits for the first time. The four-week average for jobless claims now stands at its highest point since March.
Until the politicians in DC face reality and admit that its the same small businesses that they loathe and despise (for not making massive donations to their campaigns) which are the job creation force in the economy, this isn't going to change. We're going to keep seeing incentives and pay-offs..er..bail-outs going to Wall St, big banks and a big industry.
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