U.S. Job Growth Up 236,000 While Unemployment Rate Drops to Lowest Level Since 2008
Good news America. The U.S. economy created 236,000 jobs in February with the unemployment rate dropping to its lowest level since 2008 at 7.7 percent. The U.S. Bureau of Labor Statistics report today, March 8, 2013, exceeds economist’s projected job growth of 160,000. The unemployment rate is calculated from a survey of households, while job gains come from a survey of employers. This is the 36th straight month of positive job growth with 6.35 million new jobs during this period. Approximately 125,000 jobs are needed each month to keep up with growth in the potential labor force.
Positive indicators for job growth in 2013 include the improving housing market, which is showing strong growth for the first time since 2006, and modest increases in consumer spending. While layoffs have subsided, companies remain tentative with new hiring. Job growth in the coming months will reflect the negative impacts of the national political stalemate. The March 1 sequester, March 27th debt-ceiling resolution, and spending cuts inhibit job growth. It is an encouraging development that the political stalemate and its negative impact on the economy, America’s job growth continues to improve.
State and local governments lost 10,000 jobs in February, mostly in education. The local government education sector has now lost 340,700 jobs since its recent peak in November 2009. The U.S. economy has now created positive job growth every month for three straight years.
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