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The U.S. econony created 151,000 jobs in January, which was less than economists were expecting, raising more concerns about a slowdown.

"It was a big downshift,' said John Canally, chief economic strategist at LPL Financial. "From a perspective of 200-thousand plus per month jobs, I think we've probably seen the last of those on a consistent basis for awhile. I think the biggest concern was the drop in tempory help, which is a good leading indicator of jobs. It's going to get the market concerned about recession," he said. 

Canally said the market is currently putting the odds of a recession at 50%. "The market isn't always right. The market priced in high odds of a recession in 2011 during the European debt crisis and debt ceiling debate. Back in 1998, the market also priced in a recession and we didn't have one," he said.

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Still, Canally puts the odds of a recession at a less-pessimistic 25% to 30%, based on the economic trends he's seeing. "The data have not cooperated. For example, initial jobless claims have made a clear trend higher,'" he said."'Our guess is we probably skirt a recession this year, but I think we're within a couple years of one." 

While stocks initially fell in response to the employment report, it wasn't all negative. The unemployment rate fell to 4.9%, wages increased and labor participation increased. Canally said the Federal Reserve might look at the report on a more positive note than Wall Street. He explained that the Federal Reserve has said it is looking for  monthly job gains of 125,000 to 150,000.

"I would just caution people into reading too much weakness in this as it related to the Fed. This number is at the upper end of where the Fed thinks jobs should be for the labor market to continue to tighten," said Canally. Still, he said, a March rate increase by the Fed is off the table.