The unemployment rate has reached a five year low which means there has been an impressively good improvement in the U.S. job market.
U.S. released the data for unemployment and it really did surprise us. The solid job growth in November has the brought down the U.S unemployment rate to just 7 percent.
This could also mean more hiring and less job cuts, but are these figures really giving the real picture of the American economy? Well, not really but it does show that businesses are optimistic about the growth which in turn could fuel the economy.
Employers added 203,000 jobs last month after adding 200,000 in October, the Labor Department said Friday. November’s job gain helped lower the unemployment rate from 7.3 percent in October. The economy has added a four-month average of 204,000 jobs from August through November, up sharply from 159,000 a month from April through July.
“It’s hinting very, very strongly that the economy is starting to ramp up, that growth is getting better, that businesses are hiring,” said Joel Naroff, president of Naroff Economic Advisors.
The job growth has also fueled speculation that the Federal Reserve will scale back its economic stimulus when it meets later this month.
It “gives the Fed all the evidence it needs to begin tapering its asset purchases at the next … meeting,” said Paul Ashworth, an economist at Capital Economics.