Job market looking better

According to this article that’s the story anyway.

A private report said businesses hired twice as many workers as economists had expected. Applications for unemployment benefits have reached a seven-week low. And more small businesses say they plan to increase hiring in the next three months, a trade association said.

And it’s got Economists more hopeful:

Economists responded to the latest data by raising their forecasts for hiring in June. Many now estimate that employers added at least 120,000 jobs. Some are predicting as many as 200,000 net new jobs for June.

The article states that based on numbers reported by ADP, a payroll processor, the private sector added 157,000 jobs, up from 36,000 added in may. That’s a encouraging increase to be sure.

As a result:

Stocks rose after the report was released. The Dow Jones industrial average gained more than 118 points in afternoon trading.

Other signs that the economy is improving include retailers posting strong sales and the number of people applying for unemployment falling as well as small business saying they are likely to do more hiring. Woo hoo!

Plus:

And 15 percent of small companies say they have unfilled job openings, the NFIB said, up from 12 percent the previous month

And:

Gas prices have fallen sharply since peaking in early May at a national average of nearly $4 per gallon. Prices averaged $3.58 a gallon nationwide on Thursday, according to AAA.

Although I have to say that over the 4th of July weekend, when I was traveling, the lowest I paid for gas was $3.65/gallon and as high $3.95/gallon. But of course a rise in gas prices it pretty typical for holiday weekend, although it always seems pretty fishy to me.

According the survey of almost 40 economists, the prediction is that the economy will grow at a rate of 3.2% for the second half of the year. However, in order to really put a dent in the unemployment rate the economy would need to grow at a rate of 5% for a whole year. The current predicted rate would keep unemployment numbers steady while keeping up with populations growth.

 

Advertisement