There are some encouraging signs of hope on the U.S. economy and job creation.
The unemployment rate, which has held steady at 9 percent or above for two and a half years, suddenly dropped in November to 8.6 percent according to the Labor Department.
The nation added 12,000 jobs last month, the Labor Department reported last Friday.
“Something good is stirring in the U.S. economy,” Ian Shepherdson, an economist at High Frequency Economics, wrote in a note to clients.
There is some other good news on the economy.
In addition to a reduction in the unemployment rate, last week was also one of the best weeks in stock market history. The Dow Jones Industrial average was 825 for the week.
The economy has now generated 100,000 or more jobs five months in a row—the first time that has happened since April 2006.
The increase in employment is driven in part by small business that finally sees reasons to hope and hire. More than half the jobs added in November were by retailers, restaurants and bars. There was also an increase in higher-paying jobs in professional and business services such as engineers, accountants and high-tech workers.
“We might finally be seeing new business creation expand again, which is critical to the sustainability of the recovery,” said Diane Swonk, chief economist at Mesirow Financial, a financial services company.
Other indicators of an improving economy include reports that show factories are producing more, construction is growing and people are buying more cars.
While there are encouraging signs of an improving economy unemployment remains too high and many Americans are financially struggling.
Congress needs to extend unemployment aid and pass President Obama’s jobs bill.
(Reprinted from the Philadelphia Tribune.)