In 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.