Business
More jobs created in the US – though African American unemployment not easing
Nearly a half-million people began looking for work last month, and most found jobs, the report said.
That’s a sign of growing optimism in the job market, as many people who had given up on looking for work come off the sidelines to search for jobs.
That also counters a troubling trend: a key reason why the unemployment rate has dropped since last year is that many out-of-work people have stopped looking for work. Only people without jobs who are actively seeking one are counted as unemployed.
A sustained rise in the number of people looking for jobs would be a good sign, even if it pushed up the unemployment rate.
Friday’s report comes as a host of data points to an improving economy and job market. Weekly applications for unemployment benefits have fallen about 14 percent in six months. Though they ticked up last week, average applications remain near a four-year low.
On Wednesday, payroll provider ADP said businesses added 216,000 employees last month, up from January’s total. The ADP report doesn’t include governments, which have been cutting jobs.
And service companies, which employ most Americans, are expanding at a faster pace, according to a private survey released this week. A gauge of employment shows that service firms are still hiring, particularly in the mining, educational services, and transportation and warehousing industries.
The service sector includes everything from restaurants and hotels to health care firms and financial service companies.
Some companies must hire because they can’t squeeze more output from their current staffs. Last year, worker productivity rose at its slowest pace in nearly 25 years. That means companies will likely have to add staff to meet growing demand.
Other figures point to the same conclusion. The average work week was unchanged at 34.5 hours. That’s close to the pre-recession total and suggests that companies will have to hire more workers as business improves, rather than adding more hours.
Copyright 2012 The Associated Press.
