Jobs Report Could Signal Start of Hiring Trend: Analysts

Michelle Lodge

Friday's report on March employment is likely to be just the first sign that hiring is on the upswing and will continue into the summer, two analysts told CNBC.

“All the leading indicators for the labor market have been turning up,” said Michael Darda, of MKM Partners. “It’s been a material turn, it’s been a persistent turn. I think we’re going to see jobs up in March, and it’s going to intensify during the summer.”

Darda is staying with his prediction for a 200,000 increase in March jobs in both the private and the public sectors. Darda added that even if the report shows lower figures than he predicts, market reaction will be short-term.

Most forecasters are still predicting a 200,000 increase, though some are expected the number to reach as high as 300,000.

Jobs Friday Forecast

Still, some economists have lowered their estimates. Earlier Thursday, Goldman Sachs ,cut its estimate to 200,000, down from the 275,000 increase predicted earlier.

Wednesday's ADP Employment Report indicated private sector employment decreased by 23,000 jobs from February to March on a seasonally adjusted basis.

Stuart Schweitzer of JP Morgan Private Bank also sees a continued increase in jobs. He said he has tracked a jump in online job ad postings.

“They fell sharply in the recession," he said. "They stayed locked for a year. But they have increased about 650,000 in the last five months.”

Jobs recruiters are reporting they are busier now than they had been since before the recession, across all geographies and all industries, except for commercial construction, Schweitzer added.

Those indicators are also consistent with a report Thursday that jobless claims have dropped.

That report was also in line with what Schweitzer has observed.

“Google searches for the local unemployment office keep dropping,” he said. . “That people aren’t looking for the local unemployment office, that’s a good thing.”

"Squawk Box" will have complete coverage of the March employment report from 6 am to 9 am ET on Friday.