Will the U.S. job market break its losing streak? [View All]

[The Northerner]

WASHINGTON (Reuters) – For the first time in two years, the U.S. economy may have seen a month in which more jobs were created than destroyed.

If Friday's December employment report shows a positive reading -- a long-shot but not out of the question -- it could provide a powerful jolt to what has been a sluggish recovery.

High unemployment has battered consumer confidence and spending, driven up mortgage delinquencies and defaults and put Washington's politicians on the hot seat with mid-term elections looming in 2010.

Although it will probably take several years to repair the labor market damage done during this recession, even a glimmer of better news would go a long way toward lifting spirits -- if not lawmakers' prospects for November elections.

"December could be the month where we see the first increase in payroll employment since December 2007, and even if it doesn't happen this month, job gains won't be long delayed," IHS Global Insight economist Brian Bethune said.

Read more: http://news.yahoo.com/s/nm/20100103/bs_nm/us_economy_weekahead_outlook