It looks like the job market in America ended 2015 off on a high note as American employers added about 292,000 jobs last month, which keeps the unemployment rate at 5% for the third consecutive month.
The Labor Department has said that more Americans have begun looking for jobs and have found them. Employers added a combined 50,000 more jobs in October and November than originally predicted, which makes the fourth quarter in 2015 the largest three-month pace in one year. In the fourth quarter, American employers hired an average of 284,000 employees.
The high number of jobs created comes as a surprise because of China’s slow economy and decreasing stock values, but most economists believe that the American consumer spending will counterbalance any issues that may come from overseas.
While the global economy has signaled major issues and financial markets have sunk, American employers have continually added jobs as they noticed there has been an increase in customer demand which has given businesses a push to hire more workers even though some areas, like manufacturing, oil, and gas drilling, are struggling.
If employers keep hiring and raising wages, economists believe that it will allow consumers to keep spending and support economic growth, despite the global contrast. While America seems to be prospering economically, there could some long-term effects due to China’s economic turmoil.
The US dollar has made grown 10 percent in value in the last year in comparison to other currencies, which makes American goods more expensive in the world while simultaneously cuts down the price of imported cargo.
Currently, Americans are more confident and willing to buy homes, which is evident by the approximate 15% percent sale increase of newly bought homes in 2015. Real estate consumers allowed job creation in the building and construction industries. In those two industries, alone, there were 215,000 new jobs added which was a 3.4 percent gain.
Another sign of consumer prosperity comes as more consumers bought SUVs and pickup tricks due to cheap gas and the low interest sales. While the lower gas prices hurt the oil sector, they help the consumer by lowering their gas bills. An accountant at IHS said that American households saved an average of $722 from cheaper gas in 2015, and 2016 will be no different.
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