For years now, the market has found itself on pins and needles ahead of the latest monthly jobs number.
It’s not unusual for the data to move the market – after all the fortunes of housing , banking and other trouble spots in the economy have everything to do with employment.
But as critical as the jobs report has been in the past, we’re hearing that the April report - due this Friday - may in fact be the most crucial economic indicator of the year.
“This report and the next one will tell us whether we’re having another false dawn in the labor market, says Randall Kroszner, former Fed governor and now a professor at the university of Chicago on CNBC's Fast Money.
“We saw this in early 2010 and early 2011, the labor market seemed to be recovering and then the wind came right out of the sails."
In other words, with this report and the next one we’ll find out whether the labor market is really recovering and Kroszner says that's something the Fed will be watching very, very carefully.
"That will the basis for the Fed’s decision in late June," he says, as the Fed decides whether to implement any new kind of additional QE after the current bond buying program winds down in June.
According to estimates, Friday's jobs report is expected to show hiring rebounded last month with 170,000 new jobs, an improvement from a meager 120,000 in March. Private payrolls are seen rising by 175,000.