Recent data from the Labor Department shows that U.S. hiring increased to a nine-year high in February. This is a sign of vigorous demand by businesses for fresh workers. However, the numbers of job openings have slid down.
The report released on Tuesday stated that 5.4 million workers found employments, representing a 5.8 percent increase from January and the highest since November 2006. At the same time, more U.S. citizens left their jobs. If both figures are considered, they reveal a healthier and more vigorous labor market.
This monthly jobs report estimated the net total of job gains, after deducting those who left their jobs, or were laid off, or have retired.
The report also discloses that businesses were reticent in accelerating their hiring during much of the almost seven-year recovery period. However, the base hiring numbers have already returned to their pre-recession levels. This shows that businesses are gaining their confidence regarding the future of the economy.
The number of vacant positions that need to be filled went down from 5.6 million to 5.45 million in the particular month when it was previously estimated, based on the report from the Labor Department.
Three factors that bear the hallmarks of a gradually constricting labor market are persistent low firings, abundant job listings and steady hiring. These factors can possibly induce faster wage increases for American workers.
Steady employment is still a major building block for demand which can strengthen the economy even in the face of tepid worldwide sales.
"Just about any measure of labor-market conditions right now is showing strong conditions," said Robert Dye, chief economist at Comerica Inc. in Dallas.
"I would expect month-to-month fluctuations, but we look for ongoing moderate to strong job growth this year, and that being a major support to consumers and a major support to the overall U.S. economy," he added.
