In 2014, there was a significant increase in the job market, due to an improving economy, and the job growth was the highest in 15 years. In 2015 is expectations are even higher, and are expected to surpass last year’s record growth. Last year, the improving economy led to employer confidence, which in turn led to job growth, and economists are expecting the trend to continue, because the economy is still getting stronger.
Gas prices started to go down last year, and economists are expecting them to keep going down in 2015, at the same time, household wealth is going up, and these two factors are expected to drive consumer spending up, which in turn should offset the weak markets overseas, and help the economy grow by 3%, which is an improvement from the 2.4 increase in 2014.
If the economy increases by 3% as expected, employers will have to add more jobs that they currently have, which will drive the monthly jobs average to somewhere between 250,000 to 300,000, which is higher than the 241,000 monthly average in 2014. According to Bernard Baumohl, who is the chief economist for The Economic Outlook Group, businesses will hire more people, because they will feel comfortable that the economic expansion is going to be more sustainable than it was in the past.
The low wage sector, like restaurants and local retailers, which have been lifted by the job growth, is also expected to expand, because The Affordable Health Care will expand job growth in the health care sector, while the strong housing market demands will increase payroll gains in the construction and finance world, and their projected growth is expected to be about 250,000.
According to a survey taken by CareerBuilder, 36 percent of employers are planning a full time staff increase, which is a 12 percent jump from last year, and the highest increase since 2006.
While the news of a larger improvement in the economy, and a bigger increase in job growth is welcome news for a lot of people looking for work, some economists are still a little cautious, and are predicting the monthly average in jobs added in 2015 is going to be around 230,000, because they expect the boost to consumer spending, which was aided by the drop in fuel prices, will start to fade in the second half of the year.
With the expected increase in jobs, the unemployment rate is also expected to drop, but at a slower rate. They are projecting that the current unemployment rate of 5.8% will drop to 5.4% by the end of the year, which will bring it closer to normal than it has been in years. The increase in jobs is also expected to bring about an increase in job wages, because the drop in unemployment rates will force employers to hire better skilled workers.