The government showed a snapshot of the U.S. job market and is happy that Americans are resilient in getting back to work, according to a report by the Wall Street Journal.
The government said that employers added almost 400,000 jobs during the past two months compared with the disappointing reports during summer. The steady progress in employment stymied what many feared to be a cooling labor market, the report said.
Investors see this rebound as encouraging taking to heart the partial government shutdown that took place last October. However, the overall atmosphere in terms of job growth is still too weak, the report said.
The economy still needs to recoup the losses it incurred in the recession years of 2008 and 2009.
Last month, the rate of joblessness reached its lowest level in five years. Long-term unemployment hasn't also declined, which covers people who've been out of work for six months, the report said.
The share of people working or who are actively looking for work is more worrying as it continues to go on a downward spiral. The report also shows that job sector participation rate is currently at a 35-year low.
At the present state of the economy, the number of available jobs is not the only thing that matters. The quality of jobs, which became a big concern, remains substandard. The government report sent mixed signals with regard to the quality of available jobs.
According to the report, average hourly earnings have been picking up, and the generally well-paying manufacturing and construction sectors have experienced solid gains. However, nearly a third of private-sector gains came from retailers, hotels, restaurants and temporary-help agencies-typically low-paying sectors.
On a positive note, the government's job report could set the path for the Federal Reserve to start its $85 billion-a-month bond-buying program. The said program is expected to stimulate economic growth and push interest rates down.
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