U.S. Economy Steadily Gains Momentum

Closure: Made In America Series
OLIVIA CHEUNG
News Editor

The United States ended 2011 with another drop in its unemployment rate, now at 8.3%, the nation’s lowest level since February 2009.
Millions of jobs were created in 2011, more than any other year since 2005, proving that the U.S. is making steady improvement in its economic recovery.
“It is important for the American people to recognize that we have now added 3.2 million new private sector jobs over the last 22 months, nearly 2 million new jobs last year alone,” President Obama said, addressing the Consumer Financial Protection Bureau on Jan. 6.
The U.S. Bureau of Labor Statistics reported on Jan. 6 that nonfarm payroll employment rose by 200,000 in December, doubling the gain in November and an increased amount of 1.6 million over the past 12 months. (Nonfarm payroll is a compiled name for goods-producing, construction and manufacturing companies.)
Similarly, employment in the private sector rose by 212,000 in December and by 1.9 million over the year.
While federal agencies and local governments continue to lay off workers, the private sector continues to add more jobs, with 257,000 new jobs in January.
The majority of the newly created jobs were within the industries of manufacturing, professional and business services, and leisure and hospitality.
The unemployment rate appears to be falling because people were securing jobs rather than merely leaving the work force.
“Our economy has stabilized but that’s all it really has done,” sophomore Andrew Quach said. “The majority of those jobs […] are at or below minimum wage, but the […] high paying jobs that will make our country shine above other countries economy are just not being created.”
Although the pool of unemployed people has been shrinking, the number remains high at 12.8 million. For January, the Labor Department reported that 5.5 million people had been out of work for six months or more, while about 43% remain jobless.
The economy lost about 8.5 million jobs in 2008 and 2009 but only recovered 1.1 million of them last year. However, factoring in natural population growth, the actual number of new jobs needed is even larger. Economists say about 100,000 to 125,000 new jobs have to be added every month just to keep balance with new entrants to the workforce.
“There are still a lot of struggles that people are going through out there,” Obama said. “A lot of families are still having a tough time. A lot of small businesses are still having a tough time. But we are starting to rebound. We are moving in the right direction. We have made real progress. Now is not the time to stop.”