Better Times Ahead as Job Market Continues to Grow

The number of new people signing up for unemployment benefits is at a three-year low, bringing huge relief to Americans across the country as the job market continues to stabilize. Labor department numbers indicate the number of claims filed at 348,000; the lowest since March 2008. That was a decrease of 13,000 from the previous week and this is the fourth decrease in five weeks. The economy has added more than 200,000 jobs over the last three months. The numbers indicate that lesser people are being laid-off, while hiring is picking up pace. It is still important to note that 13 million people are still unemployed and the unemployment rate of 8.3 percent is still relatively high. The only area of concern in consumer spending, people are still cautious about spending and it should increase as the job market continues to strengthen.

“The numbers add to the belief that the economy is shifting gears. There is just no number that is giving us a whole lot of trouble, except for consumer spending,” said Joel Naroff, chief economist at Naroff Economic Advisors in Holland, Pennsylvania.

What the numbers also mean is that more positive projections can be made regarding the growth of the economy for the first quarter of 2012. The economy grew by over 2.8 % in the final quarter of 2011, a significant increase from the previous quarter. In an independent report, Philadelphia Federal Reserve Bank has reported an increase in its business activity index from 7.3 in January to 10.2 this month, which means more orders and shipments for industries in the region. The factories in the region have not added much labour, but have increases working hours, which bodes well for the wages.

The much affected housing sector is also recovering slowly but steadily. Housing starts grew by over 1.5% to annual rate of 699,000 units last month. There is huge boost for multi-unit buildings, as we see Americans continue to rent houses rather than buy them. On the whole, the brightening atmosphere sees U.S stocks soar high and the U.S treasury debt prices fell which meant the Dollar is regaining strength in global markets.

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