Since May last year employers have hired maximum people in February as compared to any other month, raising hopes that recovery has gained momentum after the harsh winter employment climate.
Still the official employment report needs to be issued by the labor department as the labor market of America was recovering with more speed from the recession which was the worst one since the Great Depression.
According to Brian Levitt, the economy is sustaining itself and it has entered into the expansion stage. During the recent months US payrolls were shorter than the expectations of the economists which indicated that jobs were being created at a faster speed. Analysts are now confident that a rock solid base has been placed for job growth moving ahead.
Ryan Sweet who is an economist in Pennsylvania stated that employers have actually realized that they have to hire more rapidly and he thinks that demand will continue during the year. Since November there has been a decrease in jobless rate by 0.8 percent which was the biggest decline after 1958. Job creation numbers are extracted from the survey of the employers while the jobless percentage is extracted from household survey.
Fed is watching the unemployment rate very closely in connection to the interest rate. According to Sweet, if enough jobs are added up well enough to lower the rate of joblessness, the Feds will then feel quite comfortable but at the moment the economy is quite delicate and there are many potholes that could be hit.
An increase in oil prices due to unrest in Middle East as well as North Africa pose a threat to the economy but there encouraging statements was from the chairman of Fed who sounded optimistic.