The last recession was an especially brutal one, with millions of jobs disappearing nationwide before the bottom was reached. While it took more time than most would like to get a recovery underway, job growth has been fairly strong in recent years.
As a post linked from www.twitter.com/rockwelltrading made clear, the most recent jobs reports actually set a new record. With job growth figures reaching a high that had not been seen in a decade, some observers are starting to believe that the good times are here to stay.
An Increased Pace of Hiring Signals More Confidence and Optimism on the Part of Businesses
Job figures are often difficult to unravel and analyze, with a number of factors regularly confounding attempts at rooting out the truth. One of the most significant of these is that fact that hiring tends to have something of a seasonal character, with many companies preferring to add to their payrolls during certain times of the year.
The figures that the Bureau of Labor Statistics provides to investors and the world at large therefore typically include some degree of adjustment. By trying to account for the seasonal influences on these numbers, the reports the Bureau turns out hope to give a more accurate picture of the underlying economic reality.
Even so, the most recent figures seem to many to be a reason for real hope. While many large, non-farm employers had so far striven to keep their payrolls as slim and inexpensive as possible, it seems that economic positivity is starting to outweigh that reticence. With nearly 220,000 new jobs reported nationwide on a seasonally adjusted basis, event the relatively positive predictions of around 180,000 additions were shown to be insufficiently optimistic.
The Dow Leaps in Response, with Investors Looking Forward to More Economic Growth
As might have been expected and as detailed in the Twitter link referenced earlier, that was enough to send the markets strongly skyward, with new records being set for several of the most watched indexes. Strong job growth is something that investors of all stripes can appreciate and value, and also a phenomenon that almost inevitably benefits the broader economy as a whole.