As everyone cheers the news of the biggest jobs creation in three years, former Chairman of the Federal Reserve has acknowledged and acceded that the economy is indeed on the mend, as indicated by these improvements. The 9.7% unemployment rate has been the cause of concern in the recent months even as the activity in most sectors showed signs of revival.
The paradoxical situation drew criticism against the Obama government for not being able to do enough to boost the employment prospects in spite of the government’s many policy changes and new programs to drive economic growth forward.
Although the actual jobs creation fell short of the more optimistic prediction, the fact that this period has seen new employment opportunities arising after a long hiatus is good news enough to mark the return of belief in the economy.
Greenspan has accepted this increase in employment as a precursor to economic growth. This is good news indeed for the Obama administration, which has put in huge efforts for stabilizing the economy and building the nation’s confidence post recession. Greenspan has also commented that this is just the beginning of a resurgent phase.
He based his opinion on the fact that companies are expanding operations once more with increased allocations for equipment and infrastructure. The fact that more private employers have contributed to the new jobs creation than the government is also proof of returning market confidence and balance.
Lawrence H. Summers, presidential economic advisor reiterated that the government is satisfied with the recent economic trends. He also said that the administration expects the improvement to be sustained and will lead to a complete economy turnaround. He opined that the new employment opportunities are a means of gauging the improving economy and compared the current scenario with the one about a year ago when about 600,000 people were being rendered unemployed every month.
As expected, Summers credited the Obama administration’s many policy changes and new programs for being the catalyst for the positive change. He also reiterated the need for continued support for increased spending on infrastructure projects that will lay down the foundation for sustained economic growth.
Remarking on the fact that the unemployment rate is still at an uncomfortable percentage, Summers said that as people get more confident they look for better jobs bringing them temporarily into the pool of the unemployed. This he suggested was the reason for the unchanged unemployment rate.