In a sign that California's economy may be getting back on track. According to the states Bureau of Labor Statistics, employers added a modest 28,300 jobs for the month of May. It was the 5 straight month with increased job numbers. The unemployment rate dipped slightly to 12.4% from 12.5% in April. It isn't much but it is a step in the right direction. California still has a very high unemployment rate. It is one a few states that still has double digit unemployment rate and the third highest in the country. Nevada just surpassed Michigan for the highest unemployment rate of 14%.
The numbers although good could be just temporary as most of the jobs that were added may be related to the census. These jobs are only temporary and once the census is complete, these same people will be back being out of work. The problem in the jobs numbers is that the private sector isn't adding new jobs. This is what economist see as key to job growth. Once the economy sees solid job growth in the private sector, then the economy should start picking up again.
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It appears that the job optimism is growing according to a recent poll that was released today by Manpower Inc. Manpower is a global employment agency that looks to place talented employees with prospective jobs with business that the agency works with. The survey of 18,000 employers asked about their plans on hiring or firing decisions in the third quarter. The poll showed that 18% of those employers polled plan to add staff. It is just another sign that the job market may be finally getting a leg up. This survey is in line the the Labor Departments findings on job growth.
The survey showed that the best prospects for job growth was the Northeast. Employers expected a moderate increase in staff. The same can't be said for the West which showed the weakest prospects. Nevada was the only state that showed a negative job outlook. There is still a sense of caution though. Many employers are still on the fence about hiring. Many companies are struggling and they want to see revenues increase more before adding any new staff.
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Despite the surge in census hiring, the job market took a step back today. The nations unemployment rate dipped slightly however it is expected to go back up when the census is over. Many of the jobs created were temporary. Job growth in the private sector grew a mere 41,000 new jobs. The temporay hiring and private sector job growth resulted in the unemployment rate to drop to 9.7% from 9.9%. Once the summer is over and the census is complete, the 411,000 jobs created for the census will not exist anymore.
The strength of the economy is questionable with these new job numbers. Consumer spending is also slowing as the nations retailers reported lackluster sales for the last month. Housing prices may also see declines as well since people are not looking forward to purchasing a home as quickly since the federal tax credit expired.
Many who are out of work are looking to start their own businesses as well. Many are looking to be their own boss by starting a corporations or setting up a LLC. Businesses are the backbone of the economy. Many small business make up a large part of the job market. Small business is the key to getting the economy back up and running again.
Consumer spending is on the rise and paints a good picture of a recovering economy down the road. Retail sales rose in April which marked the seventh straight increase. Consumer spending is closely watched because it accounts for roughly two thirds of the U.S. economy. Indications that consumers are spending again bode well for the economy as a whole.
Factories are also showing signs of hope as well. Factories are increase production to meet the demands of consumers. More and more companies are starting to hire again as evidences by one of the best gob growth numbers in years. Analysts are still cautioning that there is still uncertainty in the economy. Hopes for a recovery is still dependent on jobs growth and wage increases to keep the economy going foward.
The economy as a whole appears to be recoving. The bleeding appears to be over. Other sectors are seeing gains. The auto industry is improving marked by profit reports from Toyota, who has been under enormous scrutiny for all its prodcut defects. Also, the housing market is showing signs of recovery. Most of the major metropolitan areas are showing gains.
The economy isn't out of the woods yet. Although the jobs growth has been great, the unemployment rate is staying high because more people are not back to searching for jobs. The economy has a long way to go for recovery but it appears that it is on the right track.