However with the good comes some bad. Economists expect the unemployment rate to rise to 9.2 percent in May, the highest since September 1983.
"It's still a very weak labor market out there. Businesses are reluctant to hire and continue to lay people off to control costs and bring their inventories down," says Stuart Hoffman, chief economist at PNC Financial Services Group.
And even if the recession ends later this year, as widely expected, the unemployment rate could rise well into early 2010.
That’s because the recovery could be too feeble to generate strong employment. “Maybe two-thirds of the recession is behind us, but I don't think we will be out the woods for at least eight to nine months," says PNC's Hoffman.
How should you trade it?
I think the ADP numbers tempered expectations, muses Fast Money trader Tim Seymour. So, if the number comes in anywhere under 500, I think you see a market rally.
And don’t forget, employment doesn’t drive the economy it reflects it, says Chris Thornberg Of Beacon Economics. The numbers we see on Friday are carry-overs from the nasty first quarter.
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Trader disclosure: On June 4th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Najarian Owns (BX) Call Spread; Najarian Owns (DELL) Calls; Najarian Owns (FCX) Call Spread; Najarian Owns (INTC) Call Spread; Najarian Owns (MOS) Call Spread; Najarian Owns (PALM) Calls; Najarian Owns (WNR) Call Spread; Terranova Owns (FCX), (TER), (XBI), (RIMM), (GENZ); Terranova Owns (X) & (X) Calls; Terranova Owns (BRCM) & (BRCM) Calls; Terranova Owns (DIS) Call Spread; Terranova Owns (POT) & (POT) Calls; Terranova Owns (JPM) & (JPM) Calls; Terranova Owns (BTU) & (BTU) Calls; Terranova Owns (MS) & (MS) Calls; Najarian Owns (ELN) & (ELN) Calls; Finerman's Firm Owns (FLIR); Finerman Owns (TBT); Finerman's Firm Owns (AXYS), (NOK), (PBR), (TBT), (RIG), (WMT), (MRO); Finerman's Firm And Finerman Own (BAC) Preferred Shares And Are Short (BAC); Finerman's Firm And Finerman Own (WFC) Preferred Shares, Finerman's Firm Is Short (WFC); Finerman's Firm Is Short (IJR), (MDY), (SPY), (IWM), (USO); Seymour Owns (TTM), (AAPL), (BAC), (BX), (EEM), (FXI), (TSO), (INFY), (MGM), (TIE); Seymour Is Short (NUE); Seymour's Firm owns (MBT)