Table of Contents
There was an unexpected, but a much-welcomed fall of the national unemployment rates since 2009, nearly four years, in September 2012. The fall of this unemployment rate to 7.8 percent happened for the significant reason, and this involves that many people had to account that they had at least one job. The labor department had to report that the economy had added 114, 000 jobs, in which case the total civilian workforce had to grow by 418, 000, which had to signal that many unemployed people are searching for jobs. This decline is unique unlike all the recent declines in the unemployment rates. The decline of the rates might have been a relief to president Obama during his campaigns, especially after his jaded presentation in the presidential debates. This also made the Bureau of Labor Statistics under the microscope in the midst of wild allegations that the labor numbers might have had fibbed for political reasons (Fletcher & Irwin, 2012).
There has been the hinting of the economic recovery by certain industries having growth for quite a year, in which case it showed some indication of an improvement in the job market. Report shows that there shall be brightening picture of the labor market. Last September had to appear to be a move to a higher gear with the reports of a surge in the hiring of the health care, in which case it had to help push for the decrease of the unemployment to the lowest level in a period of 44 months. It was a 7.9 percent when Obama took office, but this times rate had to fall below that, hitting at 7.8 percent. The statisticians had to revise for the earlier, that is July and August, creation of jobs estimates, by a combined 86,000. This had some suggestion that there was a more tail wind in the economy than the preceding thoughts, in which case it had to correspond with some better indicators of consumer confidence and the manufacturing industry (Fletcher & Irwin, 2012).
The main driver of the low unemployment rate involves the health care, in which case it added 44, 500 jobs as the statistics shows. This, in essence, was a reflection of the decision of the U.S Supreme Court to advocate the Affordable Care Act, also Obamacare. The insurers knew that many customers due to the fact that the federal law will require people to buy their products. In addition, many hospitals, therapist, and doctors will treat many patients. Obama also had to introduce low taxes on families, in which case it is the lowest in 50years. For the one-half median income and the median income, the rates of the average tax were lower in 2009 to 2011 than all the years back to 1955 expert for the year 2008. Such Obama policies, in which case includes the cutting of payroll taxes, had some effects in today’s average taxes rates. It also had the effects on the poor economy, but it provided enormous help in keeping taxes at historically low rates (Landler, 2012).
The report of the jobs indicated that there were signs of the economy growing in which case it include the jumping of the consumer confidence, the toughest auto sales in a record four years, rallying stock prices, and thereafter, there might be stabilization of the housing prices. The decline also in the unemployment rates provided the impetus for improving the consumer confidence about the job market, housing markets among others. The consumers were confident that the economy will grow and is on the right track and become stable. There was a pickup of spending by customers with a burst of defense orders and stronger housing markets, in which case it had to help the economy expand. The private sector also had to add jobs. Of the 104, 000 jobs from the private sector, 44, 000 jobs came from the healthcare, warehousing, and the transportation. However, the manufacturing sector had to fell by 16, 000 (Fletcher & Irwin, 2012).
The employment and the unemployment continue to be terribly far from the full employment levels fully for the four years, in which case it is after the financial crises that had to erupt in 2008, and three years after the serious recession ended. The rate of unemployment remain to be slightly below 8 percent and hence, almost 12 million women and men remain unemployed. The 8.3 people do have part-time jobs because their hours could not find a full time job. In October, the nonfarm payroll employment had to increase by 171, 000 while the unemployment rate remains unchanged at 7.9 percent. This is quite an indication that the current unemployment rate is 7.9 percents. There were also increases in the number of people employed in the part time for some economic reasons. The current state of the U.S economy keeps being on the right track, with the contributors of high gas prices, the lowering of the interest tax rates by the Federal Reserve’s and the subprime mortgages.
Planning for future stable economy encompasses preparing for future economic depressions, in which case it involves targeting investing, reduction of the debt-to-income rations and the calculated savings. Barrack Obama tax plans involves the lower individual and the corporate tax rates, in which case Obama wants to ensure the 2001 and the 2003 tax cuts be permanent for all middle-income families. He also reiterates in bringing the income tax rates down from 35 percent. Barrack Obama intends to create jobs, especially in the manufacturing industry that sparks innovation and generate the high wage jobs. In addition, he intends to reform the tax code that ensure the creation of jobs and help pay down the deficit, and lastly, he intends to expand access to the health care, in which case it will provide many opportunities. This demonstrates that Obama has robust plans to restore and continue building the economy (Landler, 2012).
Romney also wants to continue the extension of Bush tax cuts. However, this is for only all the households rather than for the middle class. He has had to call for the reduction in tax rates including for the corporate income. Romney’s position was attracting, as raising rates on the high-income households will have to generate modest revenue and higher rates on dividends, including the capital gains, in which case it is necessary for economic growth. The overall had the better view of the economic growth.
The unemployment rate currently is at its lowest since Obama took office, in which case it stands at 7.8 percent. This is quite an improvement from the past unemployment rates since 2009, which was higher. The Obama plans in restoring the economy and creation of jobs will go along the way in boosting the unemployment much lower in the future, if there are full implementations. Though the unemployment rate were at the lowest, still the overall creation of jobs remains less than vigorous, including the fact that the unemployment remains far above the normal levels and many people having jobs are not working full time. In conclusion, the employments report is quite unsettling for those who consistently worry, and it warns bout the country’s weak job representation. The often-disappointing pace of the growth of employment has had the attributes to various factors, for instance, the health care costs, strong productivity growth and the contract out jobs from the US to other countries. This implies the sluggish gains in jobs are due to the weakness taken to demand and labor demand. Therefore, addressing this issue as a nation will boost the employment.