2 Million New Jobs
The U.S. Department of Labor just reported that 108,000 net new jobs were created in December, which was significantly less than analysts had predicted. While most would celebrate the news of 108,000 jobs being created, the analysts were actually disappointed. Yet they were quite pleased by a related report from the Department. Although December's numbers were less than anticipated, the Department reported that it has revised upwards November's job growth from 215,000 to 305,000 new jobs.
The gains in November and December allowed the Administration to trumpet the fact that the economy added two million jobs from 1/1/05 through 12/31/05. "As we begin 2006, we have every reason to be optimistic," said Treasury Secretary John Snow. "Making the President's tax cuts permanent is the most important thing that we can do in the coming months to make sure the economic environment in 2006 is as healthy and as good for job-seekers as it was in 2005."
So what does this mean for the average job seeker? Well, with apologies to my vegan friends, the report is great meat for the conversations of those job seekers who are also into politics. But more importantly, for those who are searching for a new job or who are considering searching for a new job, the news is great. Although the labor market is no where as hot as it was in the late 1990's, it is strong when compared to long-term historical averages. And the widespread adoption of technology has created better opportunities for self-employment than have existed since the start of the Industrial Age. Those who are self-employed are not included in the Labor Department statistics, so the unemployment rate of 4.9 percent (down from five percent in November) likely understates the strength of the economy.
The bottom line: the labor market is strong, but not as robust as it has been or perhaps will be. If you're looking for a new job or considering looking for a new job, this is as good a time as you'll likely see for months and perhaps years.
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