United States Adds Almost 300,000 Jobs

jobs-on-the-riseIn the month of May alone, the United States reported the growth of just under 300,000 new jobs, 280,000 to be precise. This month has been the biggest increase in job growth thus far in 2015, gradually helping the unemployment rate drop since its peak in 2010. According to the Chief Economist at Bank of the West in San Francisco, Scott Anderson explained, “Job growth roared back to life in May, combined payroll gains were revised upward for the previous two months, wages rose 2.3 percent from a year earlier, and long-term unemployment fell to 2.5 million, down from a peak of 6.8 million in 2010.”

With such sharp declines in the unemployment rate, the economy is expected to grow about 2.5% in 2015, which means more jobs opening up. Even though the unemployment rate is staying steady at around 5.5%, economists and other financial advisors are not too concerned since they understand that Americans who are unemployed are searching for a long term career path rather then the first job they get offered. This phenomenon is keeping the rate steady, but is expected to drop shortly once these American’s find the job of their choice.

Economists from across the country are explaining how the current trend is encouraging and even strong. Trending in this direction is important since the individuals unemployed are going to fill out these new job openings which should help the nation reach full employment.

According to the Boston Globe, “Since the end of the winter, the economy has grown moderately, according to a recent Fed survey. Despite steady job gains, consumer spending which accounts for more than two-thirds of US economic activity, has been lackluster, economists said. A strong dollar is hurting the nation’s exports, since foreign buyers must now to pay more for American goods.”

Hopefully, the nation can continue this surge and drive the unemployment rate lower. For more information and news on the finance industry, please visit Araceli Roiz‘s official website.

International Oil Surplus Spurs Business

oil-surplusWorldwide oil production will not scale back output, as the price of oil continues to drop. OPEC, announced late last year that their production would continue on their current pace, coupling that with the current emergence of shale-oil in the Permian basin, and we have an oil surplus. With the price-per-barrel lingering around $50 of late, look for an uptick in mergers and acquisitions in the oil industry around the world.

Industry experts deduce their predictions from analysis and discussions with market decision makers and those in charge of major players in the oil world. Current cost and cash-flow pressures on companies, had led to evaluation of strategic movement into dealmaking. Late last year, announcements had begun with the Halliburton-Baker Hughes merger. This deal is set to be complete this coming summer. Also last year, a deal was made for   a Nigerian oil block and pipeline by Royal Dutch Shell to an association led by Taleveras group. Predictions are stating that in the next 6-12 months we may see the most M&A activity in sector.

Firms that are currently weathering the surplus storm, will look to take advantage of their continued cash-flow and leverage their position to acquire companies which seek a lifeboat. Firms that operate internationally will be on the prowl to enhance their portfolios while more local, national firms may be road blocked by their home-country’s agenda.

Keep in mind that with the state of the market sector, those who are in good financial standing have less cash on hand than usual. Any offer or strategic movement will be heavily thought over and carefully planned out. With decreased cash companies will not be letting a penny go to waste.

In all, analysts are stating that deal activity will benefit international and national oil health. This is an industry that has seen slow M&A activity compared to other sectors. New deals may spark a healthier market.
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