I am at this conference today, so I won't be able to say much about the employment report: As Brad DeLong notes, unemployment fell to 9.7%, and payroll employment fell by 20,000:

Unemployment Rate Down by 0.3% to 9.7%, by Brad DeLong: Payroll unemployment down by 20K.

Looking like another 4% or more productivity growth quarter, and perhaps a labor market improving by the equinox.

How is it that both employment and unemployment fell?:

Jobs Are Up! I Mean Down! Whatever … , by Paul Krugman: A confusing employment report this morning: employment down, but unemployment also down. Nor is this a story about workers dropping out of the labor force; the report shows an increase in the employment-population ratio, the percentage of adults who are working. What?

OK, the trick is that there are two different surveys. Payroll numbers come from a survey of firms; unemployment (and employment-population) numbers come from a survey of households. Both surveys are subject to error, both strict statistical sampling error and things like incomplete coverage, uncertain seasonal adjustments, and so on. When employment growth is near zero, on either side, it’s not that surprising that the surveys should point in opposite directions.

The bottom line is that economic numbers are no more than rough indicators. You have been warned.

See also Economix, Credit Writedowns, Andrew Leonard, Financial Times, WSJ, Washington Post, NY Times, Spencer at Angry Bear.

Note: Post is echoed here, with updates.