The latest jobs report conclusion: “Not terrible”
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Image courtesy of the New York Times
The Labor Department released its monthly jobs report today, and the news was… well, better than last month’s. The American economy added 103,000 jobs in December, and the unemployment rate fell to 9.4% from 9.8%. In The New York Times, one market strategist said the news was “not terrible.” Talk about faint praise.
Economists had expected a larger increase of about 150,000 jobs, after a disappointing bump of just 39,000 in November. And although the new unemployment rate is an improvement (it’s the lowest since May 2009), it also indicates more people have simply stopped looking for jobs. (The unemployment rate only measures people who are actively looking for work.) Meanwhile, economists’ rule of thumb is that we need to add at least 120,000 jobs a month just to absorb the flow of newcomers to the job market.
Still, there were a few other flickers of good news earlier in the week, adding to the increasingly “not terrible” picture of our still-struggling economy. The large payroll processor ADP reported that private sector payrolls rose by almost 300,000 in December, the biggest gain since they started measuring in 2000. And even more surprising: The consulting firm Challenger, Gray & Christmas reported that job cuts plunged 59% between 2009 and 2010, making last year the best (that is, lowest) year for job cuts since 1997.
The added jobs are encouraging news for one group of people: The 84% of U.S. workers who say they plan to look for a new job in 2011. If you’re among them, good luck! There are signs this could be your year—then again, you’ve got some competition.
Are you planning to look for a new job this year? (Feel free to comment anonymously!)
