Economists are more optimistic that the economy is gaining momentum, based not only on job growth but other positive reports.
“We’re making progress in getting the [unemployment] rate down,” said Dean Baker, a native of Chicago’s Uptown neighborhood and co-director of the Center for Economic and Policy Research, an independent think tank in Washington, D.C. “. . . Things look to be going in the right direction, but we have a long way to go.”
Newly revised employment numbers for November and December, combined with the latest January jobs report, show a “modest growth path,” particularly in the long-moribund auto, manufacturing and construction industries, economists said Sunday.
Besides the January jobs report showing jobs being created at the fastest pace in nine months and the lowest national unemployment rate in three years, economists base their confidence on bright spots such as auto sales jumping an unexpectedly high 11.4 percent in January, builders increasing construction spending in December for the fifth straight month with a 1.5 percent increase, single-family home building growing in the last three months of 2011 and manufacturing activity in January expanding at the greatest pace since June with a 54.1 index rate.
The numbers of new jobs jumped to 157,000 in November from the originally reported 100,000, and to 203,000 in December from the originally stated 200,000, according to the U.S. Bureau of Labor Statistics, which issues the reports based on monthly surveys of employers.
The January report released Friday showed 243,000 new jobs emerged, bringing the national unemployment level to 8.3 percent.
Those numbers reflect increases ranging from 85 percent to 186 percent from the 85,000 monthly new-job average from May to August.
“We need to employ 100,000 [new] workers each month just to stay even with population growth, so 243,000 is a decent number,” William Strauss, senior economist and economic adviser with the Federal Reserve Bank of Chicago said Sunday.
“With sustained numbers like that, we will eventually start to materially bring down the unemployment rate.”
Among the surprises: Men benefited from hiring in the traditionally male-dominated industries of auto, manufacturing and construction.
“The multiplier effect from these usually good-paying jobs is that these workers are more likely to go out to dinner and spend their paychecks at places that will in turn hire more workers,” Baker said.
suntimes.com
“We’re making progress in getting the [unemployment] rate down,” said Dean Baker, a native of Chicago’s Uptown neighborhood and co-director of the Center for Economic and Policy Research, an independent think tank in Washington, D.C. “. . . Things look to be going in the right direction, but we have a long way to go.”
Newly revised employment numbers for November and December, combined with the latest January jobs report, show a “modest growth path,” particularly in the long-moribund auto, manufacturing and construction industries, economists said Sunday.
Besides the January jobs report showing jobs being created at the fastest pace in nine months and the lowest national unemployment rate in three years, economists base their confidence on bright spots such as auto sales jumping an unexpectedly high 11.4 percent in January, builders increasing construction spending in December for the fifth straight month with a 1.5 percent increase, single-family home building growing in the last three months of 2011 and manufacturing activity in January expanding at the greatest pace since June with a 54.1 index rate.
The numbers of new jobs jumped to 157,000 in November from the originally reported 100,000, and to 203,000 in December from the originally stated 200,000, according to the U.S. Bureau of Labor Statistics, which issues the reports based on monthly surveys of employers.
The January report released Friday showed 243,000 new jobs emerged, bringing the national unemployment level to 8.3 percent.
Those numbers reflect increases ranging from 85 percent to 186 percent from the 85,000 monthly new-job average from May to August.
“We need to employ 100,000 [new] workers each month just to stay even with population growth, so 243,000 is a decent number,” William Strauss, senior economist and economic adviser with the Federal Reserve Bank of Chicago said Sunday.
“With sustained numbers like that, we will eventually start to materially bring down the unemployment rate.”
Among the surprises: Men benefited from hiring in the traditionally male-dominated industries of auto, manufacturing and construction.
“The multiplier effect from these usually good-paying jobs is that these workers are more likely to go out to dinner and spend their paychecks at places that will in turn hire more workers,” Baker said.
suntimes.com
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