Jul 17, 2013 Philip Burgess
In the aftermath of the financial crisis, the poor jobs market put a damper on personal finances across the country.
Now that the employment situation is improving, more Americans likely feel comfortable in their job stability, potentially leading to more spending and borrowing activity.
Should the economy continue to show signs of strength through the jobs market and other areas, short term lenders might want to consider preparing for an influx of financing applications.
June proved to be another strong month for the employment situation, with the private sector adding 188,000 jobs, up from 134,000 in the previous month, according to the ADP National Employment Report.
This figure was better than expected, as CBS News reported economists projected employers would add 165,000 in June.
By company size, small businesses added the most new positions at 84,000, followed closely by medium and large businesses. The majority of jobs came from the service providing sector, but the goods producing sector showed positive growth after a decrease in May.
Another good sign for the economy is the fact that the manufacturing industry added jobs after many months of declines.
"The job market continues to gracefully navigate through the strongly blowing fiscal headwinds," said Mark Zandi, chief economist at Moody's Analytics. "Health Care Reform does not appear to be significantly hampering job growth, at least not so far. Job gains are broad based across industries and businesses of all sizes."
With the employment situation showing marked signs of improvement, short term lending demand could increase. That being said, managers at these financial institutions might want to prepare their staff for a high amount of applications so no mistakes are made that could hold up the application process.