Author: Josh Adler
This article mentions the improving jobs market. Non-farm employment jumped 243,000, or 0.2% from December according to the economist. This December had the highest increase of jobs in nine months. The unemployment rate fell to a three year low of 8.3%. There has also been an increase in construction as 21,000 construction jobs were created. Manufacturing created 50,000. However a decrease in the unemployment rate is also because people are dropping out of the labor force as discouraged workers and therefore not considered unemployed. In January there were 631,000 increases in jobs. One of the reasons for the increase in jobs is that demand is finally being released and durable goods are being purchased. The second factor is a global trend, emerging market growth is increasing. The weaker dollar has boosted American exports. According to Morgan Stanley factory employees worked longer hours in January. This article proves how the U.S. economy is improving and the increase in job growth is stable.
This increase in job growth along with the increase in the stock market has proven that the economy is on a better path. I believe that the improvement in the economy is true growth. The economy will improve, however I do not believe that the economy cannot increase at such a fast rate. The improvement in the economy will help reassure investors and increase voter confidence in the Obama economy. The increase on expensive durable goods shows that the typical U.S. feels confident in the economy to commit to large purchases. The European economy is holding back the potential growth of the U.S. economy. Once the European Union creates resolutions for the Greek crisis and other turbulent economies then this will increase lending and stimulate the economy.
The Economist Article: http://www.economist.com/blogs/freeexchange/2012/02/americas-jobs-report