Current State of the U.S. Economy

Employment <Tab/> <Tab/>According to Bureau of Labor Statistics (Utgoff, 2003, November), nonfarm payroll employment rose by 126,000 in October, following increases in August and September that totaled 160,000, after revision. The increase in payroll employment over the last 3 months contrasts with declines in the February-July period that averaged 85,000 per month. Several service industries added jobs in October. Manufacturing employment continued to decline, although at slower pace than earlier in …

…and the labor market is also strengthening. Many economists have hoped that an upturn in business confidence and spending will fuel a continuing recovery in the labor market, which will make the broader economic recovery more sustainable. Certainly, businesses got more money to spend in the third quarter. Corporate profits after taxes rose at a 10.6 percent annual rate, the strongest gain since the fourth quarter of 1992, compared with a 5 percent contraction in the second quarter.