According to some leading economists, the jobs report is expected to show an increase of 145,000 jobs in the month of December, 2010. The report is also expected to show that the unemployment rate decreased by 9.7 percent. Even better, economists are predicting that the report will show that this hiring momentum will continue into 2011.
There are also some who say that the numbers will likely be more optimistic. Earlier this week a payroll firm, who handles paychecks for companies across the country, stated that they believed they had added nearly 300,000 new paychecks in December. This, plus a report that fewer people applied for unemployment benefits in December, is fueling some early optimism about what the report will show.
Several factors may have influenced this increase in jobs. There were fewer reported layoffs near the end of the year and holiday shopping trends were up for 2010. The government also enacted tax cuts for Americans of all income levels and there was a decrease in the payroll tax enacted for the first of the year.
All of this is encouraging for 2011, say some economists. The payroll tax cut will likely spur spending and encourage companies to grow. This will, in turn, encourage companies to start hiring and to keep existing employees.
There are those who warn that this is not an indication of a full economic recovery, however. Given the number of layoffs during the economic crisis the country would have to generate 125,000 jobs a month to keep the unemployment rate from going up and just to keep pace with the rate of population growth. In order to reduce the rate, the number of monthly jobs produced would have to double that.
Economists say that it will still take years to fully recover from the Recession. Last year, however, the country added jobs steadily through November. Through November, America was adding an average of 86,000 jobs a month.
Last week, however, there was a slight increase in applications for unemployment benefits. Most say this was an adjustment after the holidays as seasonal hires were let go as business returned to more normal levels with the first of the year.