Updated from 7:30 a.m. ET
Now that Twitter’s (TWTR) IPO is out of the way, the market turns its attention to the next big thing: Friday’s employment report.
The economy added 204,000 jobs in October -- almost double the consensus -- and hiring for September and August were revised up by a combined 60,000, according to the Labor Department. The unemployment rate ticked up to 7.3% from 7.2%. Concerns that the 16-day government shutdown would mar growth appear to be unfounded but Gene Sperling, director of President Obama’s National Economic Council, says the real question is: Will the shutdown have a lasting negative impact on the economy?
The answer to that question, according to Sperling, depends on whether Washington can get its collective act together and reach a compromise on the budget and debt ceiling.
“If we make it clear there’s not going to be a government shutdown, there's not going to be a threat of default, that will take some uncertainty out of the economy,” he says. “That could help lead to a better holiday shopping season, which is an important time for small businesses…and for many people to pick up extra dollars, sometimes by taking a temporary job.”
Check the accompanying video -- taped ahead of Friday's October jobs report -- to get Sperling’s prediction for whether the new super-committee can reach a budget accord before the Dec. 13 deadline, as well as “the other thing” he says Congress can do to ensure any dip in job creation is, indeed, an aberration.
- Budget, Tax & Economy
- Politics & Government
- Gene Sperling
- government shutdown