Unemployment Picture Continues to Get Better - January 2012

The new unemployment numbers are out and the picture continues to get rosier.  The overall numbers are better and some of the leading indicators are also improving.

Some Highlights

• The rate dropped to 8.3% - the lowest in almost three years.
• The labor market added 243k jobs - the best in nine months and better that the forecasted 140k increase.
• Private payrolls (i.e. non-government) increased by 257k and the December numbers were revised upward to 200k - the biggest back-to-back gains since early last year.

The general consensus is that a big improvement in consumer spending is driving the increases.

• There also seems to be a nice uptick in manufacturing with workweeks averaging 41.9 hours per week - the highest in 14 years and overtime is at the highest since March 2007 - these are good leading indicators that the economy overall is getting better. In order to increase productivity they will need to start hiring more staff.

There are still some caveats. There are lots of folks that have dropped out of the labor force, which does shift the percentages a little bit - but the increase in payrolls still look good to me.

So What Does This Mean to You?

• Well, if you are working, but not satisfied - take heart - you may be able to make a move more easily later this year.
• If you are out of work and haven't given up - maybe its time to get more aggressive - revisit your "brand," your resume, and your networking activities; get to front of the line for the new jobs.
• If you are out of work - maybe it is time to reinsert yourself into the market - clean up you resume, get your interview clothes pressed and keep your chin up.

As always, we encourage comments and questions!

Good luck and good searching