TIME Economy

Unemployment Rate Drops to Near 7-Year Low

Jobseekers wait to talk to a recruiter at the Colorado Hospital Association's health care career event in Denver, Oct. 13, 2014.
Rick Wilking—Reuters Jobseekers wait to talk to a recruiter at the Colorado Hospital Association's health care career event in Denver, Oct. 13, 2014.

But the numbers from March are far worse than expected

U.S. employers added 223,000 jobs in April, just 3,000 more than economists had anticipated, but signaling a labor market rebound following a poor showing in March that was dented by poor weather.

The Labor Department published April’s employment figures Friday morning, with the report showing job gains for professional and business services, health care, and construction. While it is encouraging that job growth last month exceeded Wall Street’s expectations, March was even worse than anticipated. Revised figures showed U.S. employers added just 85,000 jobs in March, far worse than the original reported figure of 126,000 and the smallest since June 2012.

Here are the highlights from this morning’s jobs report.

What you need to know: April was the 55th straight month of employment gains in the U.S. The growth last month also returned the U.S. labor market to +200,000 territory. The economy had been on a 12-month streak of gains above that threshold until it was derailed by a poor showing in March.

Hourly wages climbed just 3 cents to $24.87, and over the year average hourly earnings grew by just 2.2%. The wage gains in 2015 have so far fallen short of the 3% annual wage growth that was seen prior to 2007. That weakness comes even as many major retail and restaurant chains have issued splashy announcements proclaiming promises to hike up wages for their lowest paid employees.

The big numbers: The nation’s unemployment rate slipped to a near seven-year low of 5.4% in April from 5.5% the prior month, matching the expectations of economists surveyed by Bloomberg. The number of long-term unemployed was little changed at 2.5 million.

What you may have missed: A few industries reportedly fairly balanced job growth last month. The professional and business services sectors led the charge, but health care and construction job gains weren’t too far behind.

A notable laggard was mining, which the Labor Department reported saw a drop in employment of 15,000. Much of those losses were for mining and oil and gas extraction. Muted energy prices have pressured that industry, resulting in job losses for a sector that had until recently been a star performer.

This article originally appeared on Fortune.

TIME

This Simple Fact Can Ruin Your Life for an Entire Decade

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Getty Images

But you don't have to let it

Anybody who’s ever lost a job knows it’s a miserable experience, but a new study shows that the aftereffects of being laid off last far longer than you probably suspected.

Research on 7,000 British adults by social scientists at the University of Manchester finds bad feelings that erode trust and lead to cynicism linger for a full 10 years, even if people have moved on in their careers.

“Even a single experience of redundancy can lead to depressed trust and what is particularly concerning is that people reported less willingness to trust others even after they got another job,” says James Laurence, the study’s author. The problem is especially acute for people whose identity is strongly tied up in their work.

“Losing a job often feels like a violation of trust because it meets all the right conditions, seen through the lens of ordinary human relationships. We build trust by making commitments and keeping them,” says James Jeffries, director of career development at Bard College at Simon’s Rock.

Jeffries says it’s not surprising that people whose sense of self depends on their job are more affected by job loss. “The more serious the relationship, the deeper we sense betrayal and the harder it is to recover,” he says.

But career experts say you’re not necessarily consigned to a year of giving other people the side-eye. There are coping tools that can help you recover without having to wait a decade.

Develop a more well-rounded sense of self. “In the U.S., so much of our ego and self-esteem tied into the work we do,” says Elene Cafasso, founder and president of executive coaching firm Enerpace. When that’s taken away, it leaves a void. To keep that from taking over your life, she says you need to engage in activities that can help you reclaim your identity as a person outside of a job.

“Focus on what gives you energy – working out, dancing, singing, volunteering, spirituality, time with friends – whatever does it for you, get more of that,” she says.”Focus on what you can control and… find an area where you can make an impact.”

Embrace the desire for concrete answers. “Their eroded trust will result in a desire to gain additional security in interactions,” says career coach Todd Dewett. People who have been laid off are less likely to accept general assurances about future career advancement and will seek out specific, concrete answers, which can be useful when looking for a new job offer or a promotion down the road. “Dealing with huge setbacks can be a catalyst that pushes people to more actively process… difficult feelings,” he says.

Don’t pull the plug on your professional life entirely. “Stay current in [your] skills. Keep doing something to revise, expand and update your resume,” says Patricia Malone, executive director of the Corporate Education and Training and the Advanced Energy Training Center at Stony Brook University. “Use volunteer work to boost your transferable skills on the resume,” she suggests. This has the dual benefit of forcing you to engage with — and re-learn to trust — other people in a professional setting.

Spend some time with other people who have been laid off. One of the biggest hazards of job loss is the emotional isolation that can lead to unproductive ruminating on your loss. “[Join] a group of peers who are in the ‘same boat,'” suggests Ofer Sharone, an assistant professor at the MIT Sloan School of Management. Yes, the networking might be helpful, but it’s more than that: They know what you’re going through like nobody else does, so you can drop the “game face” sometimes.

“Not only getting together for networking, where you have to present your ‘best self,’ but getting together to share the hard emotional stuff as well,” is an invaluable way to rebuild that broken trust, Sharone says.

But don’t spend all your time with them. “Do not spend all your networking time with others in transition,” Cafasso says. “Go where folks have a job.” She suggests attending professional association events, joining community service groups, participating in religious organizations and the like.

Think about where trust still does exist in your life. “Most of this advice asks a person to stop thinking in generalities and relentlessly pursue the details that make up a productive life,” Jeffries says. “It’s tempting to revel in cynicism and grief after losing a job until the wound becomes a scar,” he says, but he warns that wallowing will ultimately come back to haunt you. “If you’re feeling cynical, chances are you’ve become blind… to all the ways your life still depends on well-placed trust.”

Read next: How Not to Answer ‘Why Are You Interested in This Position?’

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MONEY

Jobless Claims Surge by Highest Number Since 2013

Unemployment filings jumped by 31,000 last week, taking many economists by surprise.

Initial jobless claims last week increased by the highest amount in roughly two years, according to the latest data from the Department of Labor. The numbers, released Thursday, show those filing for unemployment last week jumped by 31,000 compared with a week earlier, pushing up the total number of individuals reporting to 313,000 from 282,000.

The news comes as unemployment is broadly improving. The U.S. economy added 257,000 jobs in January, continuing a 12-month streak in which employers hired more than 200,000 workers a month. As a result, a sharp rise in jobless claims seemed to take economists by surprise. A Bloomberg survey of 49 economists predicted jobless claims would rise by only 8,000.

However, as the Associated Press notes, more unemployment filings probably isn’t a cause for alarm. Short-term surveys of the employment market can be uneven, and the 4-week moving average showed an increase of just 11,500 jobless claims, significantly less than the week-by-week numbers. Other employment indicators, like wage growth and gross domestic product, have also been increasingly positive, suggesting the job market will continue to broadly improve.

TIME Mental Health/Psychology

How Being Unemployed Changes Your Personality

unemployment
Getty Images

The new results question how permanent personality really is

Add another stressor to the financial burden of losing your job. Being unemployed can change the nature of your personality, making you significantly less agreeable and changing your level of conscientious and openness, according to a new study in the Journal of Applied Psychology.

The study, conducted by a team of researchers from the U.K., asked more than 6,000 Germans to self-evaluate five of their core personality traits—agreeableness, conscientiousness, extraversion, neuroticism and openness—over a period of several years. Everyone in the sample began the study with a job, but part of the group lost their jobs and remained unemployed for the duration of the study. Others lost their job and found new employment.

Read More: Employers Hired 257,000 Workers in January

Researchers thought that men and women would behave differently in response to unemployment, since the workplace values different things from each sex. Indeed, psychologically, men and women seemed to respond differently to unemployment.

Women scored lower in agreeableness every year they were unemployed, but when men lost their jobs, they saw a temporary spike in agreeableness before a sharp decline after the third year. The study argued that agreeableness is especially valued in women in the workplace, perhaps partially explaining why women reported being less agreeable after losing their job.

Conscientiousness immediately declined in men and continued the downward slope as long as men remained unemployed. It went down in women, too, but not as consistently as it did for men.

The study challenges the notion that personality is made of unchanging traits, and suggests that public policy efforts to combat unemployment might extend beyond economic benefits.

“Policies designed to curb unemployment preserve not only psychological health but also, critically, the basic personality traits that characterize personhood,” the study authors write.

MONEY Jobs

Why We Should Be Happy With a Higher Unemployment Rate

woman holding "Hire Me" sign
Catherine Lane—Getty Images

A higher unemployment rate in an improving economy means more people are beginning to look for work again.

For the most part, Friday’s jobs report is clearly reason to cheer. The economy added 257,000, making January the the 12th consecutive month employers hired over 200,000 workers. The Labor Department even revised earlier figures, announcing 147,000 more jobs were created in November and December than previously thought.

But in spite of all this great news, one number seemed to stick out: the unemployment rate actually went up, jumping from 5.6 to 5.7 percent.

That’s not a big change but it doesn’t seem to jibe with everything else happening in the economy. How could the unemployment rate still be increasing when hiring seems to be at a post-recession high?

The answer is the official unemployment rate, at least by itself, doesn’t actually measure the economic recovery very well. This metric, also known as U3, is one of six different ways the Department of Labor measures unemployment, and it only includes people who are unemployed and actively looking for work. That means people who are unemployed but too discouraged to look for a job aren’t included in the unemployed population.

This quirk is what Gallup CEO Jim Clifton was talking about when he called the unemployment rate a “big lie,” but it’s actually telling the truth if you know what to look for. When hiring increases, as it has over the past year, people who previously gave up searching for work will once again start trying to find employment. This is obviously a good thing, but for the moment an influx of new job hunters is pushing up unemployment numbers because those who just began searching for work after a long break are essentially treated as newly unemployed.

“I don’t think [Friday’s unemployment bump] is a big deal,” says Elise Gould, a senior economist at the Economic Policy Institute, a left-leaning think tank. “I think that is mostly due to people coming back into the labor force—some of them finding jobs, some of them not finding jobs.”

In fact, as the economy continues to recover, it’s likely the unemployment rate will likely stay the same or even increase. “If had to project the unemployment rate, I would expect it would hold steady and could move a little up, but I don’t think we’re going to see it going down,” explains Gould. “As the economy gets stronger more people will enter the labor force and that will move the unemployment rate, potentially in the wrong direction.”

All this sounds nice in theory, but do we really know more people are entering the job market? The most accurate metric we have to answer that question is the labor force participation rate, which includes everyone who is working or looking for work. Unfortunately, that number can be misleading since many older Americans are leaving the market at the same time job-seekers are re-entering it, leading to a long-term downward trend.

Luckily, today’s report shows enough people started looking for work in January to push the labor force participation rate up a tick. It wasn’t much—less than a percentage point—but even a small increase is meaningful when the demographic tide is flowing the other way.

At least for once, a higher unemployment rate isn’t so bad.

MONEY

Fed Holds Rates Steady as Economic Plot Thickens

The Federal Reserve has said it won't raise rates before summer. But the economy picture is no less complex as the date approaches.

The Federal Reserve wrapped up a two-day meeting in Washington Wednesday, leaving short-term interest rates unchanged at near historic lows.

The move was widely expected: The central bank indicated as recently as December that investors weren’t likely to see a rate hike before summer. But the Fed’s actions were being closely watched nonetheless. With the summer deadline now two months closer, recent moves by the European Central Bank to bolster the continent’s economy have complicated the Fed’s upcoming choice.

The upshot is that for now U.S. consumers should be able to rest assured. Ultra-low interest rates mean borrowing costs for mortgages and other loans are unlikely to climb dramatically. But investors won’t have it so easy: Stock and bond traders will continue to fret about U.S. and European officials’ decisions, meaning more volatility like the sharp drop in Treasury yields (and rise in bond values) that took place earlier this month.

The Fed’s last meeting took place in mid-December amid feelings of increasing economic optimism. The U.S. economy had logged 3.9% GDP growth in the third quarter and the November jobs report was one of the best in months. That’s largely continued. Throw in an assist from cheap gas, and it’s no surprise the President Obama felt safe bragging about the ecomony in last week’s State of the Union.

In short, many Americans are beginning to feel like things are normal again. That’s usually the signal for the Federal Reserve to return interest rates to a more regular footing. Raising rates can slow economic growth — that’s why the Fed doesn’t want to move to soon. But keeping them low can stoke inflation. At 1.6%, well below the Fed’s 2% target, that’s not an immediate problem. The worry is that once inflation starts to rise, it can quickly get out of control.

The Fed’s decision is so tough this time around because it took such extraordinary measures to prop up the economy in the wake of the Great Recession. While so far the Fed’s strategy seems to have worked, no one likes being uncharted territory. Fed officials may feel some pressure to return monetary policy to something that feels normal.

One big problem, however, is that even as the U.S. economy has improved, much of the rest of the world continues to lag. Last week struggles in Europe prompted the ECB, Europe’s equivalent of the Fed, to undertake some extraordinary actions of its own, committing to buy tens of billions of dollars in debt each month in a new bid to stimulate the continent’s economy.

With the global economy so intertwined, the Federal Reserve has to worry weakness and instability overseas could put a drag on otherwise healthy U.S. economic expansion. In particular, the ECB’s move, the equivalent of printing billions of Euros, is likely to weaken the common currency against the dollar. That will make it more expensive for U.S. companies to export their goods — ultimately hurting profits and also providing another check on U.S. inflation.

The upshot is that if the Fed was feeling ready to act sooner rather than later, the situation overseas may be giving it second thoughts. Of course, the Fed has given itself until summer to decide. So it’s got some breathing room, if not quite as much as it did in December.

But in the meantime don’t expect jittery traders to sit tight. The Dow dropped 100 points after the Fed’s announcement from 17,452 to 17,319, while Treasury yields fell as bonds rallied. You can expect more of that kind of drama.

TIME Culture

What Unemployed People Do With Their Time

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While most of unemployed people spend a sizable part of their day job-hunting, plenty of others seem to, well, futz around

Last September, after I got fired from what was painfully close to being my dream job, I was gripped by aimlessness, malaise, and more than a little self-loathing. I imagined myself jobless, penniless, and miserable for the rest of my days. Then, I decided to seize this less-than-shining, underemployed moment to pursue my dream of writing full-time (in my case, as a freelance culture, news, and lifestyle journalist).

Though I was nervous about taking the leap into a profession that’s notoriously competitive and unlucrative, I felt ready to try something new: to work from home on projects of my choosing, without a Big Boss breathing down my neck. I’m lucky to be semi-successful at the freelance thing, because losing or eschewing a traditional job doesn’t always unfold so smoothly for everyone, millennials included.

MORE Lessons I Learned From Getting Fired

Traditional jobs can be hard to come by for millennials — who are shaping up to be the most educated generation in history (but not the most employed; in 2014, 9.1 percent of 18- to 29-year-olds were unemployed). While the job market is picking up for many, that uptick isn’t necessarily helping millennials, for whom job security has been rocky throughout most of their adult lives. As Andrew Hanson, research analyst at Georgetown University, said back in July, “Young people are the first to be let go by companies in a recession and the last to be let back in.” As of July 2014, millennials made up a whopping 40 percent of America’s jobless masses (that equates to 4.6 million people, in case you’re curious).

As usual, the statistics for women lead to a more complicated narrative. For women 25 to 54, unemployment is 30%. The number of working women has climbed overall during the later part of the 20th century, but those numbers have been sinking since 2000, partially due to economic trends, but also to a recent rise in stay-at-home parenting. (Notably, in wealthier areas, like the Salt Lake City suburbs and the Upper East Side of New York City, rates of women working are lower than in other US regions.) Rates of female unemployment are also higher in more rural and poverty-stricken regions, of course, like the Deep South, Appalachia, Northern Michigan, and various locations in the middle of the country. (Education, or lack thereof, plays a major part.)

MORE Why Getting Pregnant Cost This Woman Her Paycheck

Plenty of American men are jobless, too (in November, 5.4 percent of men over the age of 20). Unemployed guys, reports The New York Times, work out less and feel that they have worse relationships with their families than when they were members of a workforce. Women, on the other hand, are “more likely to say that their health and their relationships with friends and family have improved since they stopped working.”

Maybe that’s because, according to this New York Times interactive that documents the average daily activities of 147 unemployed men and women aged 25-54, females tend to spend a lot more time doing housework and “caring for others” than their unemployed dude counterparts; women spend a whopping six hours on both, while men spend less than three each.

And though plenty of unemployed people spend a sizable part of their day job-hunting, plenty of others seem to, well, futz around. They tend to sleep more than their working peers (slightly more than an additional hour), and devote much more time to entertainment like TV and movies — especially the men. Out of the 65 people who spent more of their day watching movies and TV than doing anything else, 46 were men; only 19 were women. And both men and women sans jobs “spend about 1.5 times as much time socializing as the average employed person.”

MORE Why It’s So Hard To Make New Friends

The day-to-day lifestyles of the thousands of Americans eschewing traditional 9-5 workplaces — either by choice or necessity — look dramatically different from those with “normal” jobs, indeed. But as more millennials struggle to find and hold onto jobs in a competitive, overcrowded market, it seems likely that their everyday habits will be forced to evolve, whether that includes six hours of TV, socializing, traveling, care-taking or…something else altogether.

This article originally appeared on Refinery29.com.

MONEY The Economy

Why These 5 Companies Are Laying Off Thousands of Workers

eBay Inc. office building, San Jose, California.
Kristoffer Tripplaar—Sipa USA

The economy is on the mend. Unemployment rates are down. So what's up with all these companies slashing jobs by the thousands?

Here’s some explanation—note we used the word “explanation” not “justification”—for why a handful of companies are laying off large chunks of their workforces even as the economy is on the upswing and unemployment is falling month after month.

eBay: 2,400 jobs
On Wednesday, eBay announced it would be cutting 2,400 jobs in the first quarter of 2015. The company says that the layoff figure includes positions that are unfilled, so the actual number of people losing their jobs will be less than 2,400. What’s more, eBay points out that the figure represents only 7% of the company’s total workforce. (Are we the only ones surprised to hear that eBay currently employs 34,600 people?)

Among the factors influencing the layoff decision: “Weak holiday sales” and revenues that have been lower than analysts expected, as well as a company restructuring in anticipation of the spinoff of eBay’s online payment service PayPal. The company said it may also spin off a third division, eBay Enterprises, which runs e-commerce operations for other companies, explaining in a statement: “It has become clear that [eBay Enterprise] has limited synergies with either business, and a separation will allow both to focus exclusively on their core markets.”

As for weak sales, one reason eBay is suffering is that, unlike Amazon—which effectively uses its Amazon Prime membership program to create legions of shoppers who make the vast majority of their purchases at its site—many eBay customers use the site randomly and haphazardly rather than habitually. “It’s the infrequent shopper that comes two, three, four times a year,” eBay CEO Donahoe told USA Today. “They didn’t come back at the rate we thought.”

American Express: 4,000 jobs
During the course of 2015, AmEx plans on cutting costs by trimming 4,000 jobs after failing to meet long-term revenue growth target of 8%. The Wall Street Journal pointed to “a stronger dollar, a weak December for retail sales and the sharp drop in gas prices” as forces that hurt the company’s fourth quarter results—which actually showed revenue and profits increasing, just not enough to satisfy investors. The 4,000 layoffs represent 6% of AmEx’s total workforce of roughly 63,000.

Baker Hughes & Halliburton: 8,000 jobs
The two energy companies agreed to merge last autumn, and both ended the year strongly, with Halliburton posting revenues up nearly 15% and Baker Hughes achieving record revenues for the quarter. Nonetheless, in light of plunging crude oil and gas prices, oilfield services provider Baker Hughes announced plans for layoffs of 11% of its workforce, roughly 7,000 employees, while Halliburton plans for about 1,000 job cuts of its own.

“This is really the crappy part of the job, and this is what I hate about this industry frankly,” Baker Hughes CEO Martin Craighead said this week in a conference call with analysts. “This is the industry, and it’s throwing us another one of these downturns, and we’re going to be good stewards of our business and do the right thing. But these are never decisions that are done mechanically.”

Schlumberger: 9,000 jobs
Another oilfield services company, Schlumberger also reported surprisingly strong fourth quarter results despite the steep drop in oil and gas prices—and it too recently announced big-time layoffs. Last week, the company said it had laid off 9,000 employees worldwide in late 2014 as profits fell and demand for oil retreated.

Read next: Here’s What You Really Need to Advance Your Career

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TIME Economy

Unemployment Rate Drops to 5.6% as Employers Add 252,000 Jobs

Pedestrians walk by a now hiring sign posted in the window of a business on Nov. 7, 2014 in San Rafael, Calif.
Justin Sullivan—Getty Images Pedestrians walk by a now hiring sign posted in the window of a business on Nov. 7, 2014 in San Rafael, Calif.

December marked the 11th straight month of payroll increases above 200,000

U.S. job growth remained brisk in December, with employers adding 252,000 jobs to their payrolls after November’s outsized increase. The nation’s unemployment rate fell to 5.6% from November’s 5.8%.

December marked the 11th straight month of payroll increases above 200,000, the longest stretch since 1994. With a revised 353,000 jump in November, and October’s count also revised higher, the economy created 50,000 more jobs than previously reported in the prior two months.

“The U.S. is sort of an island of relative strength in a pretty choppy global sea. People are worried the problems abroad could afflict the U.S., but our domestic fundamentals are pretty sound and should outweigh that,” said Josh Feinman, chief global economist at Deutsche Asset & Wealth Management in New York.

December’s gains capped a strong year for hiring. With another job creation number over 200,000, employment gains for 2014 at around 3 million — the largest since 1999.

A five cent drop in average hourly earnings after rising six cents in November, took some shine off the report.

Wage growth has been frustratingly tepid and economists believe the Federal Reserve will be hesitant to pull the trigger on raising interest rates without a significant increase in labor costs.

The U.S. central bank has kept its short-term interest rate near zero since December 2008. It has not raised interest rates since 2006, but recently signaled it was moving closer to hiking, even if inflation remains below the Fed’s 2.0 percent target. Most economists expect the first rate increase in June.

But an acceleration in wage gains is in the cards as the labor market continues to tighten.

That, together with lower gasoline prices are expected to provide a tail wind to consumer spending this year.

“As the labor market moves closer to full employment … we are likely to see firms increase wages. We have already started to see some of that,” said Sam Bullard, a senior economist at Wells Fargo in Charlotte, North Carolina.

Most of the measures tracked by Fed Chair Janet Yellen to gauge the amount of slack in the labor market have pointed to tightening conditions and would be again under scrutiny.

A broad measure of joblessness that includes people who want to work but have given up searching and those working part-time because they cannot find full-time employment is at six-year lows, the labor force appears to have stabilized, while the ranks of the long-term unemployed are also shrinking.

—Reuters contributed to this report

This article originally appeared on Fortune.com

MONEY Jobs

Why Is Employment Picking Up? Thank Government

public construction workers
Reza Estakhrian—Getty Images

After hurting the employment picture for so long, local, state and federal governments are finally adding to payrolls.

The U.S. economy continued its winning streak by adding 252,000 jobs in December, the 11th consecutive month employers hired more than 200,000 workers. The unemployment rate fell to 5.6%, a post-recession low, as various sectors (from business services to health care to construction) added to payrolls.

Boosting hiring isn’t exactly new when it comes to private businesses, which have been bolstering their staffing for every month for almost five years.

What’s different about the recent pickup in employment is the positive effect of governments (state, local and federal). While jobs aren’t being added at rapid pace, they have grown steadily over the past year, and are no longer subtracting from the labor market like they were not too long ago.

Government employment increased by 12,000 in December, compared to a reduction of 2,000 employees in the last month of 2013. Compared to a year ago, state and local governments throughout the country have added a combined 108,000 jobs.

As recently as last January the government shed 22,000 positions. Sustained, incremental growth beats much of the sector’s post-recession record, which saw employment drop off thanks to lower tax revenue and austerity measures.

Government payrolls increased by about 0.5% over the last year — which doesn’t look terribly good compared to the private sector’s 2.1% gain. But when you look at the recent gains against the 0.05% decrease in the twelve months before January 2014, you start to appreciate the recent uptick.

Gov't jobs

What’s going on?

Well, state and local government finances have stabilized and marginally improved over the past couple of years, giving statehouses and municipalities a chance to improve its fiscal situation.

Take this note from a recent National Association of State Budget Officers report which says, “In contrast to the period immediately following the Great Recession, consistent year-over-year growth has helped states steadily increase spending, reduce taxes and fees, close budget gaps and minimize mid-year budget cuts.”

The nation’s economy grew at an annualized 5% rate in the third quarter, after jumping 4.6% in the three months before. The trade deficit fell in November to an 11-month low, thanks in part to lower energy costs, which will help fourth quarter growth.

NASBO expects states’s revenues to increase by 3.1% in the next fiscal year, compared to an estimated 1.3% gain in 2014, with much of that spending dedicated to education and Medicaid.

With a more solid financial position, governments across the country are able to spend more on basic items, like construction. Public construction, for instance, increased by 3.2% last November compared to the same time last year, according to the Census Bureau.

Overall government spending has stopped following dramatically and actually picked up in the third quarter on a year-over-year basis.

Expenditure

Of course, government employment still has a ways to go before returning to normal. In the five years after the dot-com inspired recession, public sector employment gained by 4.5%. (It’s fallen by 2.8% since the recession ended in June 2009.) And while state budgets have normalized, Governors aren’t exactly flush with cash.

Says NASBO: “More and more states are moving beyond recession induced declines, but spending growth is below average in fiscal 2015, as it has been throughout the economic recovery.”

Not to mention hourly earnings fell by five cents, to $24.57, a decline of 0.2%.

Still, some employment growth is better than none at all.

Updated with earnings data.

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