That is certainly part of the reason... Others are that since the layoffs, companies are lean and mean with higher profits, they are consuming inventories without additional manufacturing costs, and they of course have much less costs with fewer personal, less health costs, etc.
Unfortunately, this will come to an end shortly. That will begin the question of whether they actually hire more workers or continue to attempt their lean and mean existence (with overseas manufacturing). That is when you can determine the direction of the future markets for local companies.
Unfortunately, that won’t happen for several months and along with the severe housing markets and the poor commercial market, even that may be a wash. I really doubt that improvements will be seen in employment for 2-3 years. That is going to be a major problem for both the markets and the overall economy.
Since a major part of the economy here is retail spending, it will be a major factor in the economic recovery.
Which also hinges on the November elections.
If Repubs look to greatly increase their numbers, I expect companies become more confident in a longer term outlook. If tax cuts become the prevailing sentiment under a prosperity message more workers will be hired and unemployment comes down IMO.