The Bureau of Labor Statistics (BLS) reported a drop in the unemployment rate across America to just 5.5%, after February saw 295,000 jobs added. This is the twelfth straight gain of over 200,ooo jobs per month.
Although the numbers paint a rosy picture, the drop in unemployment from the previous 5.7% was partly due to individuals who were previously unemployed but unable to find work, and who simply dropped out of the labor market. This means they are no longer counted as unemployed.
But 3.3 million more Americans now count themselves part of the labor force as compared to a year before. Although the average hourly wage rose just 3 cents in February, more jobs means more spending across the U.S. In fact, spending has increased by the most in four years, which is in turn bolstering the economy. Low gas prices are also helping more Americans save money.
With the recovery growing stronger, it is anticipated that ultra-low interest rates could finally see an increase from the Federal Reserve come this Summer or Fall.