Economists expected last month’s non-farm payroll declines to be in the range of 125,000. However, non-farm payrolls fell just by 11,000. U.S. unemployment rate declined from 10.2% to 10%. Employment fell in construction, manufacturing and information, while temporary help services and health care added jobs.

Job market is in recovery mode. The good news is that it is still in recovery mode. It’s not getting any worse. Antulio Bomfim, a former Fed economist, said “We expect the jobless rate to start falling very gradually in the first half of 2010″.  Carl Riccadonna, senior U.S. economist at Deutsche Bank, said  “We’ve still got a long way to go, but the good news in this report provides important positive momentum.” Positive momentum… that’s what we need now! This report is cheering up the market today. This enthusiasm may last for a while until another Dubai screws up with their finances.

Related Link: Wall Street Journal

The survey of human-resource executives at 175 mostly midsize and large U.S. firms by consulting firm Watson Wyatt Worldwide Inc. found that 33% plan to unfreeze salaries within the next six months and 79% within the next year. It appears that employers are becoming more optimistic and adding new jobs. Even if they are not adding new jobs, reducing number of layoffs alone will help the economy.

The Watson Wyatt survey found employers will be slower to restore changes in benefit programs — and many recent changes to health-care plans may become permanent. More details about the survey are here.