Encouraging Jobs Report

The recent jobs report shows that unemployment is down to 7.0 percent and that the economy grew by 203K jobs.  The most encouraging part of the report is that unemployment was down because of increased hiring, not because the labor force shrunk.  More people who wanted work had it rather than people giving up on finding work.  455K people joined the workforce in November.

203K jobs is steady (if not grand) improvement in hiring.  The Washington Post suggests that this report shows that the government shut down had little effect on the economy and that the Federal Reserve could consider pulling back its bond buying program to support economic recovery.  They also suggest that holiday sales will be 3 percent higher than last year – another sign of recovery.

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