Most recent payroll count shows employment growth under Obama
After conducting preliminary corrections to payroll count; it was found that since President Barrack Obama came to office, there has been a significant increase in the number of jobs in the US. According to the Labor Department in Washington the revised records show that by March 2012, 386,000 jobs were created. If this fact gets confirmed in the closing report, it would debunk the previous records that show a shortfall of 261,000 jobs from January 2009 to the last month mentioned in the report.
There has also been a slight increase in the unemployment rate after Obama was inaugurated. In August, the unemployment rate was found to be 8.1%, a fairly steep rise from 7.8% since being sworn in back in January 2009. In fact, we have to go back to 1948 to find a longer stretch of decline in US unemployment.
Alan Krueger, chairman of Obama’s Council of Economic Advisers, said that in the past 2.5 years there has been a rise in the number of jobs which is quite contrasting to what was initially reported. He added that more efforts are being made to return to full employment.
It will be quite interesting to see what the official final report shows in February 2013. The closing report which is going to be released three months post presidential elections will also include January employment data.
After the release of the preliminary report, Romney focused on highlighting the unemployment rate during Obama’s tenure. He cited that the current US President has failed to cut the unemployment estimates that were planned by his advisers in 2009, even after the $832 billion stimulus package to control the floundering economy was released by the Federal Reserve.
Andrea Saul, Romney’s campaign spokeswoman, stated that President Obama had assured that after releasing the stimulus, with 9 million people employed the rate of unemployment would stay at 5.4%. She added that at present the unemployment rate is 8% or higher for 43 consecutive months and nearly 23 million people are struggling to find gainful employment. In one final swing she stated President Obama has failed miserably to meet the goals set by his administration to overcome the unemployment issue.
Adam Fetcher, Andrea Saul’s counterpart, stated the President has a clear plan to improve the growth of the US economy by creating new jobs and by providing security to the middle-class. He said that Obama’s jobs proposal was aimed at creating over 1 million jobs. However, the plans proposed by Mitt Romney slowed the unemployment rate which resulted in a job loss of about 1 million.
In September 2011, Obama had proposed the American Jobs Act which was aimed at reducing payroll taxes for all full time employee’s, thus making more jobs available. One month after the proposal of the $447 billion stimulus package, the Senate Republicans rejected the bill.
Effects on currency rates
This will once again reaffirm the worlds largest economy as a safe haven in the eyes of investors, which they will use as protection of wealth by buying US dollars and thus increasing their value due to higher demand. Employment increases also have a big influence over stock market movements, which were witnessed shortly after the announcement of today’s findings as markets rallied.
With so much uncertainty surrounding the events currently taking place in Europe this news will be well received and could very well continue to effect currency values over the weekend.