Economy Inches Forward

The lead story in today’s New York Times, “Growth in Jobs Beats Estimates, Easing Concerns,” provides a measure of comfort to all those anxious about the possibility of a double-dip recession. Apparently, private sector job growth is up this month, and even the estimates for June and July need to be revised upwards as well.

In addition, there are other encouraging signs, such as a slight increase in average wages and hours in the work week. These statistics show that employers are trying to get as much as possible out of their existing workforce, a technique that usually foreshadows additional hiring.

Despite all the predictions from election-year Republicans that “the sky is falling, the sky is falling,” it seems like the measured and prudent approach followed by the Obama administration is starting to bear fruit. The question is whether any improvement will come in time to make a difference in the November elections.

Government jobs continue to decline as well as a loss of jobs from the final shutdown of the Census effort. And the natural population growth in the United States also mandates a base increase of employment before the unemployment rate will even increase in the first place.

It does, however, look like some additional measure may pass to help the U.S. economy. The administration is planning on unveiling a set of new initiatives next week, and I hope the Republicans find the ability to support at least some of them.