This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

US Economy Adds 171K Jobs; Rate Rises To 7.9 Pct.

For the third time since the recovery from the Great Recession began in June 2009, the economy appears to be picking up momentum.

Since July, the economy has created an average of 173,000 jobs a month. That is up from an average of 67,000 a month from April through June.

The pickup in hiring suggests that businesses aren't as worried as many analysts thought about the package of tax increases and spending cuts known as the "fiscal cliff" that will take effect unless Congress acts by Jan. 1.

Companies have cut back spending on computers, industrial machinery and other heavy equipment in recent months. That was seen by many economists as a sign of concern about the cliff and Europe's economic deterioration.

But better consumer demand may be encouraging employers to hire more employees anyway. James Marple, an economist at TD Bank, said hiring could take off next year if the fiscal cliff is avoided.

"The fact that businesses are continuing to expand even with huge fiscal uncertainty means that once this cloud lifts, the pace of job creation has lots of room to accelerate," he said.

One big question is whether consumers will be able to keep spending enough to propel growth. Average hourly wages rose only 1.1 percent in the past 12 months, the slowest annual pace on records dating back to 1965.

But the economy has added 1.6 million jobs in 10 months this year. All those new paychecks mean more demand for goods and services, which should lead to more hiring. The country could enter what economists call a virtuous cycle, an escalating loop of hiring, more spending and still more hiring.

Politically, the report was more neutral. It allowed both President Barack Obama and his Republican opponent, Mitt Romney, political ammunition in the fading days of the campaign.

Stock quotes in this article: VOCS 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs