Recently, there has been worry about the state of the U.S. economy. Those worries have now been relieved after the government announced that 280,000 jobs were added in May. This amount is over the usual monthly job growth the country has seen over the past year, according to the Economic Times. The job surge caused the unemployment rate to drop to 5.5 percent. The economic climb has even caused hourly wages to rise to a reported 0.3 percent higher.
Recently Moody’s analytics economist, Ryan Sweet, gave a statement to the Washington Post about the not-so-gradual job increase.
“The U.S. economy has emerged from its first-quarter lull. The second quarter got off to a slow start—the April data was disappointing across the board, but the May data is looking much better. It suggests the economy is gaining momentum.”
Though the job growth is large, it is is only in a few industries. Recently, the Labor Department released information on which industries have been responsible for the new jobs.
“Job gains occurred in professional and business services, leisure and hospitality, and health care.”
The new job growth is thought to help the Federal Reserve, where there is a desire to increase interest rates from the current low numbers. Tara M. Sinclair, Associate Economic Professor at George Washington University, has recently made a statement on the employment growth.
“This is the best combination of numbers we have seen in many months. Wages are ticking up and attracting people back into the labor force; we are still seeing strong employment growth.”
With 2015 being the sixth year of the U.S. economic recovery period, there has been evidence that the employment growth is not evenly distributed. This has caused a few industries to thrive, while others are severely failing. The U.S. government admits, in a recent statement from the White House, that the recovery is not exactly over.
“Although the job market has made considerable progress throughout this recovery, challenges remain for our economy and there is more work to do.”
More economic insiders, like those at Robert Half International, Inc., have spent time calculating the markets that are doing better; those that are doing worse; or have remain the same. Paul McDonald, an Executive Senior Director at Robert Half, has reveled that exact numbers of job growth in particular markets.
“We’re finding in some of the sectors a 10% to 20% increase in compensation on the open market, where you may have budgeted 4% or 5%. It’s not enough to retain the person.”
[Image via Intuitive Accountant]