Seniors may breathe a little easier after last Friday’s employment figures. For months, financial experts have emphasized the key to economic recovery: jobs, jobs, and jobs. Payroll numbers are a common indicator of economic well-being. Last month, payrolls increased by 162,000 workers; that comes as the largest gain since March 2007. This is the third gain in the past five months reported by the Labor Department.
The government also revised January and February figures to include an additional 62,000 jobs. Perhaps one of the most promising data points is the unchanged jobless rate. The jobless rate is stable even as unemployed Americans resume the job hunt; this is associated with a growing and stabilized economy. The monthly payroll count is composed from government surveys of businesses and employment numbers from households.
Economic output has slowly risen since last summer, but employment numbers remained stagnant until very recent. According to Harvard University Professor Jeffrey Frankel, “Speaking personally, it now seems very clear that the recession has ended.” This news is especially welcoming as graduation looms for current seniors. Certain companies, such as Caterpillar, are steadily increasing their payroll in preparation for economic expansion.
While there are a number of positives in the report, the recovery is just underway. Deemed the worst recession since the 1930s, the figures are just beginning to show the depth and length of the previous years’ economic turmoil. Additionally, the payroll figures are slightly inflated due to the recent hiring of temporary census workers.
.”It will take time to achieve the strong and sustained job growth that we need,” said President Barack Obama during a speech in Charlotte, NC on Friday.
A report by the Congressional Budget Office shows that the economy needs to add 100,000 jobs a month simply to absorb new entrants into the labor market.
There were positive rebounds in the market as a result of the figures. While the market was closed in observance of Good Friday, Treasury Securities dropped while the 10-year note increased after the announcement. Although many still feel the economic pinch, there was some good job news on Good Friday.