The USA economy has added 280,000 new jobs during the previous month and also the average daily wages has been increased esp. for the private sector workers. This reassures that the economy is on the right track to recover from the 7 year old Great Recession. This is indeed a good sign for the people of USA.
One of the most reliable markers for estimating how the economy of a country is performing is to note the number of new jobs the economy is creating. If this is taken as a standard for the economic performance of a country the economy of USA is doing quite well. The employers in USA have added a good 280,000 jobs last month. The addition of such a huge number of jobs in a single month reassures that the economic recovery is still on the right path.
This is indeed great news for the people of USA who have suffered from a drastic economic recession and worst unemployment rates in years in the recent past. And this is not the only good sign. The average earnings of a worker have also increased significantly.
Some figures can be deceiving as the nations unemployment rate has raised higher to 5.5 percent in May of this year from 5.4 percent the previous month but the only reason behind these figures are the increased number of people is entering into the labor market.
The labor department released a report on Friday which has shown some encouraging figures. It said that the per hour earnings of the private sector workers rose 8 cents to a total of $24.96 in may which is a 2.3 percent increase from the same month last year.
The job growth is even exceeding the analysts’ expectation as they forecasted the new jobs at 221,000 as it happened in the month of April but it had exceeded this number by a huge margin.
The addition of such a huge number of jobs is suggesting that the economy is doing well at the moment and reassures that the gloomy performance of the economy earlier this year was merely a glitch.
It has almost been 7 years since the Great Recession and these figures are very encouraging in this particular regard that the economic recovery is on the right track.
Overall these are good figures but if we compare it with the previous years’ average, the average of this year’s first 5 months is way too low than the average job added per month in the previous year. The average of first five months is nearly 217000 whereas the monthly average in the previous year was 260,000. But this a good sign as there is a steady pace in the growth and is almost two times the figure that is needed to absorb population growth.