Job creation is a critical component for a country’s economic growth and gross domestic product. With jobs come consumer spending and confidence. When we refer to job creation, we are talking about the total amount of new jobs added to the country each month, which is also known as the non-farm payrolls reading. The number is carefully monitored by the Federal Reserve to help the central bank determine its monetary policy and the direction of interest rates. Strong and sustained job creation is the ultimate goal of the Federal Reserve, which, of course, benefits and grows the economy.
At this time, job creation looks promising, as the United States has recovered all of the jobs lost during the Great Recession. In 2014, the majority of months witnessed job creation of more than 200,000 jobs per month. In September, the economy added an impressive 248,000 new jobs, representing the 48th straight month of jobs growth in the country, according to the Bureau of Labor Statistics.
While the job creation readings are good, the number needs to rise and also be sustainable. Some pundits believe a healthy job market occurs at more than 300,000 new jobs monthly. As long as the economy grows and consumer spending rises, job creation should come in at around 200,000 and higher as we move into 2015.