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.

Lower Benefits, Lower Unemployment Rate

average-monthly-job-growthDuring the depression of 2008 the state of California approved funding to those who were faced with hard times and help them get through a few rough years until they bounced back on their feet. After three years of helping out the community, Democrats believed it was time to start decreasing unemployment benefits since many of the unemployed were citizens from the 2008 crash.

According to the National Desert News, “The average period of unemployment benefit coverage dropped from 53 weeks of coverage to 25 weeks after the federal benefits program was cut.” By cutting the benefit coverage in half, the hopes were the people collecting unemployment would be enticed to look for employment. When this was implemented in 2011 the number of unemployed drastically fell, and number of jobs by Californian residents grew.

Since unemployment rates vary from state to state, California was able to make this change even though it did not sit well with the residents collecting unemployment since the average around the nation was just around 37 weeks of coverage. The democrats did not propose the change of benefits to strong arm their residents or make their lives that much more difficult, but to pick up and strengthen the economy of California. The more jobs that would be created, the better the economy would be from facing another disaster similar to the one faced in 2008.

Even though people may be upset about the drop in benefits, they cannot argue with the results. “Average employment growth was about 25 percent higher in 2014 than in the best of several preceding years.” Employment rates are rising and states taking this approach nationwide can see similar results. In 2014 alone, 1.8 million new jobs were created.

For more information about Araceli, please head over to her official website.