Article #1 Assignment Example | Topics and Well Written Essays - 500 words

Article #1 - Assignment Example In this article, the author has tried to discuss many points related to job gains and rising pay in labor market and their impacts on economy. According to this article, economy is reviving rapidly ever since the recession started 8 years ago. Labor Department’s report on job gains and pay raise has revealed that 321,000 jobs were created in November 2014 despite the predictions (200,000 jobs) of economist. A handsome increase (0.4) in payments to ordinary workers observed as opposed to the 0.2 estimates but jobless rate stayed at 5.8%. Plunging oil prices coupled with the advent of holiday season provided impetus to increase in wages. Increase in payrolls of 2.65 million is best annual figure since 1990s. Due to increase in wages, Federal Reserve is likely to increase short term interest rates. According to author, some experts argue that Federal Reserve may also increase its key interest rate lever in March 2015. 6.9 million Americans are working as part time employees as they cannot find full time work. The increase in wages would pursue through next six months but November data alone is not enough to change the thinking of Federal Reserve, said Guy Berger, United States economist at RBS. In the recent years, energy sector has been performing well in term of job growth but in the aftermath of slump in oil prices throughout the world, energy sector is expected to cut jobs. The prospect of higher interest rates is making investors cautious and stocks and bonds rose modestly after publishing of Department of Labor report. In my point of view, the author has tried his best to prove the points he tried to explain. But at some points there is no clear indication of facts by the authors. Author is not sure about many future predictions. As usual different economists are of different views in the wake of Department of Labor Report. However, most of the economists are hopeful that economy would revive by virtue of 60% more