In answer to your first question, no, the March jobs report by itself won’t make me change my TSP allocation. There are enough variables out there which can impact a single report (weather, oil price drops, etc.) that I will be looking for a longer term trend. And even then, employment numbers are only one of the indicators I consider when making investment decisions in my Thrift Savings Plan.
The answer to your second question wraps us into the discussion of where we really are in the business cycle right now. It has been such a long slow recovery that most pundits assume we must be out of the recovery phase and into the middle phase of the cycle. I tend to take the view that we are still in the recovery phase (and that at least in part explains why the S Fund is outperforming the C fund), but with the economy reaching full employment and interest rates poised to start up, we are certainly close to that middle “performing” phase.