US reports solid job growth as winter’s grip loosens
After being hit hard with slow economic growth and higher unemployment because of bad weather conditions, the US economy has indicated a solid growth in their job levels as the grip of cold weather loosens up. As per a report published, the private employers added 191000 workers in the month of March, which was 13000 more than what were employed during the previous month. On the other hand, the production activity in the factories is also clawing back after being disrupted significantly by the cold weather in the months of December and January. As per a polling conducted by Reuters on various economists, the new orders received by the factories were rebounded by 1.2 percent in February. However, the production activity is still working operating under its full capacity because the businesses are first looking to sell the piled up stock from the second half of 2013.
Overall, the expansionary phase in the businesses seems to be arrive again as confirmed by the Commerce Department that the new orders for manufactured goods jumped by 1.6 percent in February, the biggest rise since September, 2013. Prior to that, during the month of January, the economy witnessed largest fall of 1.0 percent drop in the new orders received instead of the previously reported 0.7 percent fall.
Important to note that all the above discussed events are having an integral macro-economic relationship. For Instance, with the increase in the number of factory orders, the businesses in order to increase their production units employ more labor, which leads to decrease in the unemployment figures in the economy. Further, increase in employment figures enhances the income of the labor which fuels the consumer demand in the economy. Hence, all the above economic movements will put the US economy back on the path of growth.
Works Cited
U.S. private job growth, factory orders accelerate. 6 June 2014 <http://www.bnn.ca/News/2014/4/2/Private-job-growth-factory-orders-accelerate.aspx>.
