Stocks Surge After Jobs Report Showing Increased Hiring
BOSTON (CBS) - The Dow tacked on a triple-digit gain, even though the unemployment rate edged up very slightly.
Nigel Gault, Chief US economist at IHS Global Insight, says the report is clearly good news. He says that fears about the US slipping back into recession are receding.
WBZ NewsRadio 1030's Anthony Silva reports
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Some wonder why the jobs report and the unemployment rate are different. Gault tells me the jobs report is based on a survey of employers. The unemployment rate comes from a survey of households. People are asked if they have a job, are unemployed, or are looking for work. Gault says that survey tends to be more volatile than the employers' survey.
Looking at where the growth was in July, Gault says the US gained most jobs in the private services sector, which is where we need to generate most of our jobs. He says private education services and leisure and the hospitality industries added jobs, particularly in food service and drinking places.
Gault says the jobless rate is high, but people still want to go out and have a good time.
