The US economy seems to be on the rise this month as we come off of a very successful April, during which the US added an astounding 288,000 jobs and pushed the jobless rate to 6.3%. That is the lowest we have seen it since 2008, and the best monthly increase since January of 2012.
Economists polled by Bloomberg before the Labor Department’s announcement Friday morning only called for a modest increase of 218,000 in jobs added, with the unemployment rate only falling by a mere 0.1 percent to a possible 6.6 percent. Thankfully, the economists were a little off this time.
The labor department polls establishments to get the jobs added figures and polls households to get the jobless rate. After a sharp decline in the economy during the harsh winter months, this is good news for Americans who still seem discouraged over the economy.
However, it's not time to break out the party supplies quite yet. There was also a loss of 806,000 people in the work force to consider, as well as the continued stagnancy of average hourly earnings, which aren't great for the economy.
As a rule, monthly jobless reports are simply a small sampling of the economy's climate and not a complete picture. But, this news is welcome anytime, and on Friday the government increased its estimate of jobs added in February and March by 36,000, tempering last quarter's bleak picture. There has also been an encouraging increase overall of the average monthly jobs added, which stands at 197,000.
Of course, just as February and March numbers were increased from their original palor, the numbers for April are just as vulnerable and can be increased or decreased as the numbers become more clear in the coming weeks.
Whether or not Americans feel the pressure lifting from this latest hike remains to be seen, but good news is always welcome.
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