Things are looking brighter in the business world as the unemployment rate went down in February by a modest 0.1% to 8.9%, the lowest in nearly two years. This is a full one percent decrease in the last three months. Companies are showing their confidence by adding 192,000 jobs to the economy last month.
It is not all good news though; state and local governments are reducing jobs due to budget shortfalls. A total of approximately 30,000 government jobs were cut in February, the most since November.
The good news is that the economy is gaining momentum. Shoppers are now spending more and manufacturing is growing at the fastest pace in nearly seven years. Even the service sector is expanding at a fast rate.
More still needs to be done. Despite this recent improvement, unemployment is still higher than it was during the Great Recession.
So, is the labor market finally turning the corner? Let’s hope so.