In December, government jobs fell by 10,000 but private employers boosted their hiring, adding 113,000 jobs. These rates were enough to drive down the unemployment rate to 9.4% from 9.8%, a small distance but headed in the right direction. Another reason for the drop in the unemployment rate is that the government no longer counts people that have stopped looking for work as unemployed. Even though more people were hired than in previous months, the increase in payroll gain was smaller than the 145,000 the economists predicted. Over the past three months, the economy has added an average of 128,000 jobs, which is enough to keep up with the population growth. Nearly double is needed to significantly reduce the unemployment rate. A report Thursday said that fewer people applied for unemployment benefits over the past month than in any four-week period in more than two years. A decrease in layoffs has consumers feeling better about the economy. This past holiday shopping season was the best in four years. A payroll tax cut coming this month will give Americans more money for the new year. Overall, Jobless rate is likely to keep falling but very slowly.
It is very good news to hear that jobs are finally being generated and they are coming from private businesses, which is what we need to grow our economny. Outsourcing is not good in keeping up our economy. If small business can prosper, the US will be in much better shape. A tax cut will also be nice as long as it goes to everyone across the board, regardless of income. The wealthy work for their money as well so they deserve one too. I feel like there may be a little false hope in the issue however because of the fact that even when people stop looking for jobs, they are no longer counted as unemployed when in reality that is what they are. Hopefully, more new jobs will begin to regenerate and unemployment can slowly go down. I feel that technology has a bit to do with the problem in unemployment becuase now machines can do jobs that people once did.
http://www.msnbc.msn.com/id/40960689/ns/business-eye_on_the_economy/
Yes this is really good news.
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