Big Job Gains and Rising Pay in Labor Data - Assignment Example

In this article, the author has tried to discuss many points related to job gains and rising pay in the labor market and their impacts on the economy. According to this article, the economy ithe s reviving rapidly ever since the recession started 8 years ago. Labor Department’s report on job gains and pay raises has revealed that 321,000 jobs were created in November 2014 despite the predictions (200,000 jobs) of economists.

A handsome increase (0.4) in payments to ordinary workers was observed as opposed to the 0.2 estimates but the jobless rate stayed at 5.8%. Plunging oil prices coupled with the advent of the holiday season provided the impetus for an increase in wages. An increase in payrolls of 2the .65 million is the best annual figure san since the 1990s. Due to An increase in wages, Federal Reserve is lithe kely to increase short-term interest rates. According to the author, some experts argue that Federalshort-may also increases its key interest rate lever in March 2015. 6.9 million Americans are working as part-time employees as they cannot find full-time work.

The increase in wages would pursue through the next six months but November data alone is not enough to change the thinking of the Federal Reserve, said Guy Berger, United States economist at RBS. In recent years, the energy sector has been performing well in terms of job growth but in the aftermath of the slump in oil prices throughout the world, the energy sector is expected to cut jobs. The prospect of higher interest rates is making investors cautious and stocks and bonds rose modestly after the publishing of the Department of Labor report.

In my point of view, the author has tried his best to prove the points he tried to explain. But at some points, there is no clear indication of facts by the authors. The author is not sure about many future predictions. As usual different economists are of different views in the wake of the Department of Labor Report. However, most economists are hopeful that the economy would revive by a 60% increase in jobs than expected. The author also presented the opposing view of other economists thereby making the point that still nothing can be said for sure about the next six months.

It is not clear in this article whether Federal Reserve would increase interstate in March 2015 or by mid-2015. I like this research work very much. The author of this article has timid-2015ts due. The author has nicely presented the arguments and supported them with statistics. The data portrayed in tables and charts rightly manifests the view of the authors. The authors have integrated the predictions of economists and the report of the Department of Labor in a nice way.