Good times are ahead as the financial slump that shook the U.S. seems to be fading away. As per reports, the unemployment rate has fallen to the lowest in four years and currently stands at 7.7 percent. This is proof that the economy is once again recovering. The rate stood at 7.9 percent in January and is expected to lower even more in the upcoming months. Jobs have tremendously grown over the last few months, averaging around 200,000 per month since November. There are not just more jobs now but higher wages as well. The construction sector is said to have helped the most with the highest hiring in six years. Sectors that were hit the most, including the housing and auto sectors seem to be improving as well. Corporations are enjoying big profits and high growth rate. Even emerging growth companies are recording big numbers. Sturm, Ruger & Co. (NYSE: RGR) recorded 16 percent sales growth, which is impressive and the company is expected to grow even more.
A total of 236,000 jobs were added in February. The number would have been even higher had the government been contributing to the sector. Instead, the government has continued to cut jobs over the year with the number standing at 10,000 in February. The fall in unemployment simply means that there are more people finding jobs now. Through November to February, employers added an average of 205,000 jobs per month. The positive news has given rise to stock prices as well. If things continue this way, the Dow Jones Industrial Average will get its fourth straight record close.
With consumer’s spending power increasing, small companies like JMP Group Inc. (NYSE: JMP) are able to improve their balance sheets. The construction and manufacturing sector also received a boost and added 48,000 and 14,000 jobs in February, respectively. Retailers, too, seem to be doing well. Health and Education services gained 24,000 and the IT industry also added around 20,000 jobs, thanks to the growth in small companies like Bridgeline Digital Inc. (NASDAQ: BLIN). The average pay has also increased, which helps Americans improve their lifestyle and also offset the hit from higher taxes and prices.
Given the growth and the increasing demand, companies are looking to hire new and competitive people that can help them grow and achieve their goals. Big corporations like The Boeing Company (NYSE: BA), Google Inc. (NASDAQ: GOOG) and Caterpillar Inc. (NYSE: CAT) are extensively hiring so that they can grow even further and enter new territories. Google is already expected to launch new services. In addition, small and growing corporations like True Religion Apparel Inc. (NASDAQ: TRLG) and Air Methods Corp. (NASDAQ: AIRM) are also hiring aggressively. True Religion’s CEO, Jeffrey Lubell, believes in reaching a global audience while increasing jobs in the U.S. The company saw 224 percent increase in its hiring, which is simply splendid.
One of Moody’s Analytics (NYSE: MCO) senior economist said, “We’re seeing the mix of jobs improve.” This is good as this does not only create jobs but helps improve the overall economic condition of the country and its residents. This change also offers small companies more opportunities and the chance to grow and give competition to big giants.