Jun 13, 2014 Walt Wojciechowski
Although the U.S. population has risen steadily over the past six years, the fact that employment rates have increased in conjunction with that statistic could mean that the economy is on a path toward recovery. Consumer credit card debt has also grown substantially, primarily to pay automotive expenses and costs related to receiving higher education, Reuters reported. It's evident that job security coincides well with spending confidence.
Not as cautious
The source referenced statistics released by the U.S. Federal Reserve, which discovered that American citizens' credit spending rose in April by $26.85 billion. This activity brought the total amount of consumer debt to $3.18 trillion, growing at an annual rate of 10.2 percent. Financial analysts acknowledged that student loans and automobile payments consisted of the bulk of April's investment, clocking in at around $18 billion and rising at a yearly rate of 8.2 percent.
Students may be struggling
Some economists have asserted that this activity is a cause for celebration, noting that consumer spending accounts for more than two-thirds of the U.S. market. However, Personal Finance Hub surmised that not all of this debt is a result of credit card usage, which has been rising 2.2 percent on a yearly basis. Many young people recognize that obtaining a higher education is necessary for succeeding in the future.
Since the summer of 2009, tuition rates have expanded significantly. This has made it difficult for a fair amount of graduates to obtain assets that accumulate worth over long periods of time. In other words, it could be asserted that many people leaving high school are getting themselves into debt because they believe it's a necessity, not because they want to.
Employment levels rising
On the positive side, Commercial Property Executive cited the Bureau of Labor Statistics' findings as a positive sign that the economy continues to improve, with the number of employed U.S. citizens stood at an all-time high in May. Although the percentage of those "critical" to the workforce - people aged 24-to-54 - dipped down, slightly, it's still much greater when compared to previous decades, such as the mid-1960s.
Last month, professional and business services, as well as health care and social assistance, each added 55,000 jobs. One of the largest gains was witnessed in supply chain employment, with open positions rising by 16,000, nearly doubling the monthly average for 2013 in the sector. The latter statistic is quite encouraging, primarily because demand for transportation and warehouse personnel generally means that retailers are witnessing increased in-store and e-commerce activity.
Commercial Property Executive noted that Wall Street investors reacted well to the BLS' June 6 report, with the Down Jones Industrial Averaging gaining 88.2 points. Standard and Poor's 500 and the Nasdaq also rose by 0.5 percent and 0.6 percent, respectively.
Even in regard to the state of higher education, greater enrollment rates means that more skilled workers will enter the economy over the coming years, increasing the amount of people possessing acumen in high-demand industries such as Internet technology.