The June month was an excellent indicator of increasing employment opportunities in the US and the same trend is continuing this month. The employment growth also gave Federal Reserve Chairman Ben S. Bernanke the excuse to slow down record monetary stimulus this year. Indicators show that payrolls climbed by 202,000 a month on average from January through June.
The number 202,000 when compared with 180,000 in the second half of 2012 seems a bright signal. There has been a significant improvement in the housing sector which influenced economists to develop a positive outlook.
Bernanke had also accepted last week that rising housing construction and home sales are generating new job opportunities. There are also recommendations that the housing industry can contribute more vigorously in the national economy only when there is a residential investment of 20 to 30 percent growth levels which lingered at 12 percent in 2012.
Though the interest rates increased, US housing sector fundamentals remain favorable. Last week Ben Bernanke admitted that housing contributed significantly to the recent gains in economic activity. To him, home sales, house prices, and residential construction moved up over the past year.
Despite the US previously facing one of the worst recessions after 1945, the employment data is strong. Best part is companies such as Fairfield, General Electric, Lufkin Industries Inc., etc. are investing and gearing to generate more employment.
Housing sector companies too have either started hiring or wish to hire new employees. News about United Rentals Inc. (URI) hiring 93 sales people and more to its payroll was good news for housing sector.
Similarly, Texas Industries which is a leading supplier of construction materials recently finished commissioning a 1.4 million-ton cement facility. To cash in the growth opportunities, the company also acquired 42 ready-mix plant sites in the quarter ended May 31, this all will definitely need new people.
Are the Jobs For Real?
There is huge criticism coming from various sectors about the claim on the increased number of employment opportunities in June and this month. According to an estimate the number of Americans applying for unemployment benefits has increased. Last week, 7,000 people applied and the total number increased to 343,000.
Some critics also claim that though jobs have been created in the last couple of months, the trend is towards low paid and part time employment. They also rule out that the claim that the housing sector is doing well and generating employment does not hold water as they conclude that looking at the data collectively, it is apparent that the US housing market recovery isn’t as robust as it appears.
To contact the reporter of this story: Jonathan Millet at firstname.lastname@example.org