According to Small Business Loans Depot’s review of the Bureau of Labor Statistics 8:30 A.M. (E.S.T.) Friday, March 9th, 2012 report of the employment situation, the surprise in the improvements in recent adding of jobs and strengthening of the economy in the last 2 quarters has been in it’s consistency.
According to the Bureau of Labor Statistics, “nonfarm payroll employment rose by 227,000 in February, and the unemployment rate was unchanged at 8.3 percent. Employment rose in professional and business services, health care and social assistance, leisure and hospitality, manufacturing and mining.”
Higher employment causes higher payroll costs. Companies will look for ways to get money for higher payroll.
Prior to 1st Quarter 2012 and 4th Quarter 2011, jobs added figures and the unemployment rate figures were improving, but not improving consistently month to month. In some months in the summer of 2011, the jobs added figures were less than 100,000. When the jobs added figures are in the 50,000 t0 75,000 range, those figures are too low as with those rates, it would take dozens of years for the job levels to get back to mid 2008 levels.
In order to get back to 2008 levels, the jobs added figures need to be in the 200,000 to 300,000 range in order to get back to previous employment levels prior to the loss of roughly 8,000,000 jobs when the recession began in 2008.
Significant job increases have been consistent since beginning of 4th Quarter 2011.