Signaling good news in the employment market for the first time in years, American companies have begun hiring new employees at a pace that is the fastest since 2006, a time when the economy was humming along nicely. In April, 286,000 new jobs were created in a wide variety of industries. It marked the third consecutive month of gains over 200,000 and the 14th consecutive month of added jobs. The growth was a pleasant surprise for economists, who referred to a “virtuous cycle” that includes consumer spending, increased corporate earnings and, of course, additional hiring.

Said Joel Naroff, president of Naroff Economic Advisors, “This was really a good report because ultimately it is all about jobs. More and more, it is looking as if the recovery is back on track despite the headwinds it is facing.” Among the negatives that Naroff refers to are rising oil and gas prices, as well as a still-battered housing industry. Analysts, however, are now saying that gasoline prices may likely have peaked for the summer at around $4 per gallon, meaning that whatever damage is occurring on that front has already been factored in.

Getting in on the good news, the broad stock market indexes rose last Friday, with the Dow up 55 points for the day after a big increase in the morning. Noted President Obama, “We’ve made this progress at a time when our economy’s facing some serious headwinds. There will undoubtedly be some more challenges ahead, but the fact is that we are still making progress. Read the rest of this entry »