Boost in job creation wipes out recession losses

Written By Unknown on Sabtu, 07 Juni 2014 | 12.33

The economy continued to add jobs last month, finally regaining the positions lost in the Great Recession — but with the population growing, experts say more growth will be needed in the years to come.

Employers added 217,000 jobs in May, the latest sign the economy is continuing to slowly and steadily improve.

"Job creation continues to impress, boosting expectations of a near-term recovery in the labor market," said Sterne Agee chief economist Lindsey Piegza.

Those jobs pushed the economy back over the pre-recession peak, five years after the recession ended. Still, that is a largely symbolic benchmark. The U.S. population has grown 7 percent in the past five years, and the Economic Policy Institute has estimated that 7 million more jobs are needed to keep pace with population growth.

"It was a milestone we needed to hit, but our objective has to be a lot higher than that," said Nigel Gault, co-chief economist with the Parthenon Group. "It's nice, but it doesn't mean a lot and it's not really something to celebrate."

Over the past three months, monthly job growth has averaged 234,000 jobs, sharply higher than the 150,000 averaged over the previous three months. The unemployment rate stayed at 6.3 percent last month, the lowest rate in more than five years. Experts said they expect the steady growth in jobs to continue.

"We see the current trend of employment growth continuing for at least the remainder of the year, neither accelerating nor decelerating," said Doug Handler, chief U.S. economist for IHS Global Insight.


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