Job Growth to Help Drive Economic Renewal
Better yet, the unemployment rate fell to 8.9%, below the estimate of 9.1% and 9.0% in January. I feel that the break below 9.0% is a key milestone and perhaps a turning point. The improvement was that much more important given that the unemployment rate was 9.8% in November 2010.
I have been saying how we need jobs to really add to the economic recovery and what we are seeing is a good start. And if the strong job creation continues, I sense that the economy will expand at a higher growth rate in 2011 and 2012.
In the private sector, the ADP Employment Change was better than expected, with 217,000 new private jobs in February, well above the estimate of 165,000 and the revised 189,000 in January.
And, on a weekly basis, the first-time initial claims reading for the week to February 26 was impressive at 368,000, well below the estimate of 400,000. Readings below 400,000 are positive.
Jobs will add to the economic recovery. My economic analysis is based on what is referred to as the “multiplier effect,” where a dollar spent results in more spending. For instance, you spend a dollar at the store. That dollar is used to pay workers, who in turn spend. This cycle continues and is a major driver of total spending in the economy.
For example, a worker buys a bike at the store. The salesperson makes a wage and commission and in turn buys spends money, say on a lunch at a restaurant. The salesperson tips the waitress at the restaurant, who in turn uses her tip to buy something. As you can see, the initial spending causes a domino effect in spending, which helps to drive up GDP.
Add in the new jobs and the spending will rise significantly. Factor in the multiplier effect and the new jobs generate additional growth. This can only be positive and this is what the government wants to see. Plus, more jobs mean less spending on unemployment benefits and, more importantly, increased taxes from workers returning to the workforce. This will help with the mounting deficit and debt.
We just need to see jobs continue to rise each month. The problem is that there are presently about 15.1 million Americans unemployed and looking for jobs while struggling to make ends meet. There are only about 2.9 million available jobs. Do the math. That is five unemployed workers competing for one job.
It will not be easy, but I’m encouraged by the jobs report. Let’s hope the good news continues.
Retire on This One Hot Stock!
This stock is up 232% since we first picked it. Our expert analysts say it will go up another 100% in the next 12 months! Our top 19 stock picks were up an average of 173.57% in 2010 (not a misprint). See where we are making money in 2011 and get our combined 100 years of investing experience working for you starting today.
Get your FREE report on our top stock pick immediately here.
350 Fifth Avenue, 59th Floor, New York, NY 10118, 9058562022
This release was published on openPR.
Permanent link to this press release:
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.
You can edit or delete your press release Job Growth to Help Drive Economic Renewal here
News-ID: 165385 • Views: 1605
More Releases from profitconfidential
Penny Stock Detectives Special Report Reveals a Country Actually Considering Rai …
In a recent Penny Stock Detectives article, editor Danny Esposito argues that as global economic growth around the world continues to contract, an investor would be hard-pressed to find a central bank that was actually contemplating raising interest rates. However, the editor’s recent article reveals one country’s central bank that is actually doing so, due to its economic strength that can be seen in its job numbers, real estate market,
How to Own McDonald’s at a Discounted Price, According to Leading Financial Ne …
According to George Leong, contributor to Profit Confidential, at the current level for the stock in McDonald’s Corporation, the top growth has been discounted into the price of the shares. But Leong believes you can still play the growth of McDonald’s through Arcos Dorados Holdings Inc. “Arcos Dorados Holdings Inc. is the largest McDonald’s franchisee in the world based on system-wide sales and number of restaurants,” says Leong. In the article
Investors Ignore Powerful Investor Tools; Special Report by Leading Financial We …
In a recent Penny Stock Detectives article, editor Danny Esposito points out that two widely used measures in technical analysis have uncovered new ways that can help investors maximize their returns and/or reduce their losses. Esposito believes the “golden cross” and the “death cross” are critical crossover technical indicators that investors ignore at their own peril. “The simple moving average in technical analysis measures the average price of a particular stock
Best Buy Faces Questionable Future, Reports Leading Financial Newsletter Profit …
According to Sasha Cekerevac, contributor to Profit Confidential, the future is looking increasingly bleak for one of the largest electronic retailers in the world: Best Buy Co., Inc. Online retailers already pose a hurdle for stores. However, this hurdle is growing, as consumers prefer to touch the product in the store but purchase the goods at home. In the article “What’s the Future for Best Buy?,” Cekerevac notes that a great
More Releases for February
Vandal’s Landscaping Announces Their February Freeze
Often people that live in Winnipeg equate January as the coldest month of the year. With an average daily temperature of -16 degrees Celsius, it is. However, February has an average daily temperature of -14 degrees Celsius. The coldest of these days typically happen either just before or during the annual Festival Du Voyageur around Valentine's day. After already experiencing a bitterly cold January in 2018 and an extreme cold warning
The Residence Bintan opens February 2018
September, 2018: Having established hugely successful properties in the Indian Ocean and North Africa, 2018, will see the Cenizaro group make their first foray into Indonesia with an exciting new opening in Bintan. Located on the east coast of Bintan Island, a short boat-ride from Singapore, The Residence Bintan will open in Winter 2018 amongst lush tropical greenery and breath-taking views of the South China Sea. The hotel will be
Liberty States Fiction Writers February Blog Tour
Liberty States Fiction Writers is pleased to announce their February Blog Tour: Meet the Authors in conjunction with the 2nd Annual Create Something Magical Conference. Starting February 1st, Liberty States Fiction Writers will introduce the authors signing at the writer’s conference Book Fair (March 19th, 2011) on their blog: http://www.libertystatesfictionwriters.com/blog-read-around-the-world/ . Post comments for your favorite author, connect with other readers and writers! First week’s guest authors include: February 1st - Undead
BBB Consumer Alerts for February 2009
BBB Warns of Garner-based Web Retailer Online Weight-Loss Company Highlighted in February Consumer Alerts RALEIGH, N.C. (February 19, 2009) - The Better Business Bureau (BBB) of Eastern North Carolina (www.bbb.org) warns consumers to be cautious when dealing with companies offering free trials, especially when a credit or debit card is used to cover shipping and handling costs. Complaints are being filed regarding the deceptive practices of an online company with a post
Kaululehua Hawaiian Cultural Center: February 2008 Classes
The Kaululehua Hawaiian Cultural Center in South San Francisco is pleased to announce a new weekly class: HULA FOR NEW MOMS AND MOMS-TO-BE every Friday at 9:00am. Our first class will begin on Friday, February 8, 2008 and will include basic hula movements, Hawaiian poetry and history. This is a great opportunity for moms and our “newest hula dancers” to get active in a fun and nurturing family
Landrush of asia-domains begins February 20
The Sunrise Period of asia-domains has closed at 2008 January 31. Individual companies and the general public will soon be eligible to register for available asia-domains when the Landrush phase kicks off on February 20, 2008. Landrush concludes on March 12, with Go Live scheduled for March 26, 2008. During the Landrush phase anyone around the world can apply for any available asia-domains, representing a golden opportunity for individuals looking to