The U.S. economy is on more solid ground with a steady increase in jobs.
The Labor Department released a report on Friday that showed a burst of hiring in November that added 321,000 jobs.
In addition, the unemployment rate remained at a six-year low of 5.8 percent. However the unemployment rate for African Americans was 11.1 percent, virtually unchanged from October, with a decrease of unemployment of 1.3 percent over the same time last year.
The report shows those with higher education do better than those with less education. The unemployment rate for those with a bachelor’s degree or higher was 3.2 percent.
The government reported that 44,000 more jobs were added in September and October combined than it had previously estimated. So far this year, job gains have averaged 241,000 a month, putting 2014 on track to be the strongest year for hiring since 1999.
“These were boom-like numbers,” said Mark Zandi, chief economist at Moody’s Analytics. “They indicate that the U.S. economy is on very solid ground.”
In November, hiring was boosted by seasonal hiring related to the holiday shopping season. Retailers added 50,200 jobs, the most in 11 months. Transportation and warehousing gained 16,700.
In a sign of the economy’s strength the hiring increase ranged across many industries. A measure of industries that added jobs reached its highest point since 1998.
But in a sign of the economy’s strength, solid job growth ranged across many industries. A measure of industries that added jobs reached its highest point since 1998.
Manufacturers added 28,000 jobs in November, the most in a year, and education and health services 38,000. Professional and technical services, a category that includes higher-paying jobs such as accountants, engineers and architects, gained 37,500 jobs, the most in 3½ years. Construction firms added 20,000.
While the job market is undoubtedly doing better there is still significant room for improvement.
For example, about 6.9 million Americans are working part time because they cannot find full-time positions. Also, economists would like to see continued and stronger hourly wage gain.
So far the wage gains for most Americans have been a modest 2.1 percent over the last 12 months, barely enough to keep up with inflation.
Economists say the unemployment rate will need to drop even further to below 5 percent before there is a more significant increase in wages.
The question is whether the incoming Republican-led congress will work with President Barack Obama to enact policies that will continue the positive trend in jobs growth.
(Reprinted from the Philadelphia Tribune.)
