At the time when recovery hasn't get its pace yet, the bright news from the Bureau of Labor Statistic is truly motivating. According to its February data, about 236,000 jobs have been added, reducing the unemployment rate to a nearly 7.7%. However, the question lies in whether or not this momentum continues, as the economy seems not to operate at its best at the moment, which in the long run might slow down the growth. In my opinion, I totally agree that it will all come to how the Fed would do to handle the situation. So far the decision to leave the interest rate at 0% until unemployment rate is down to at least 6.5% seems promising, however the potential inflation and the number of increasing long-term unemployment might prove to be troublematic if the Fed are not flexible enough to adapt to changes.
http://www.economist.com/node/21573242
I believe that part of the jump in hiring may be due to employers adding more workers in order to keep people at part time hours. I also believe that as corporate profits are growing, they are squeezing their workers even more and offering fewer or inferior benefits.
ReplyDeleteThe drop in the unemployment rate is certainly good news. For the moment, inflation does not seem to be a major concern seeing as the U.S. has had relatively little inflation recently relative to the increase in its money supply. And the Fed seems to have a good idea of when they intend to act on inflationary pressures.
ReplyDeleteOverall, the U.S. economy is looking good in the present with falling unemployment and a recovering housing market.