A report from the Labor Department reveals that the unemployment rate dropped to 8.8 percent in March. According to the report, released on Friday morning, this is the lowest rate the economy has experienced in two years.
216,000 Jobs Added, 4-Month Drop Lowest Since 1983
The Labor Department report says 216,000 new jobs were created last month. This helped to offset layoffs from local governments that some thought would negatively affect the unemployment rate. Among the sectors that added jobs last month were factories, education, retailers, health care, as well as a number of professional and financial services.
Private employers were said to have driven nearly all of the gains over the past two months, adding 230,000 jobs last month and another 240,000 jobs in February. According to reports, this is the first time private hiring topped 200,000 in back-to-back months since 2006–more than a year before the recession started.
Another bit of good news in the report is that the drop to 8.8 percent for March was a full percentage point lower than the rate four months ago. This is said to be the sharpest drop seen since 1983.
Is the Economy Ready to Recover?
The fact that jobs have topped 200,000 for two months straight and the unemployment rate is dropping fast could mean good news for individuals seeking employment. But of course, other areas of the economy are still struggling–most notably, the housing market, which some think is heading for a price double dip.
Experts believe that adding jobs is exactly what is needed to pull the economy out of its slump since it could not only increase consumer spending but help homeowners pay their mortgages, which could then reduce foreclosures, increase property values and help aid the ailing market.
The economy must wait for consumers to catch up, though. The good news is recent reports show consumer confidence in the economy is increasing.
But if consumers don’t feel comfortable that they can not only find employment, but actually maintain it over a substantial enough period to spend rather than save, many sectors of the economy may not reflect the improved job numbers for some time.
