Jobs Back on the Rise

Jobs Back on the Rise

Recently, the Labor Department released the news that 215,000 jobs were added in November, up from 44,000 in October. The Bush administration claims that the increase is due to their policies of cutting taxes and spending. Unemployment remained around 5%. Job growth rates have finally returned to pre-Katrina levels, indicating the the nation is firmly on the road to recovery from the disaster. Average hourly earnings rose along with the new employment, up to $16.32 from $16.29. However, the economy must be monitored closely to avoid "overheating," as mentioned in the article. My question is this: the Bush administration is taking a lot of credit for the increase in jobs and hourly earnings, citing tax and spending cuts. However, surely this policy was not the only cause. What other factors could have contributed to these positive trends in the labor market? One possibility is that consumers have become more confident and are buying more products, producing profits for companies. These profits allow the companies to employ more workers. I'd like to hear what someone else might think about this issue.