The U.S. Bureau of Labor Statistics (BLS) released their jobs report this morning for the month of Feb. 2013, which showed that 236,000 new private sector jobs were created last month and the unemployment rate fell from 7.9 percent to 7.7 percent. In the prior 3 months, employment had risen by an average of 195,000 per month.
The BLS report shows that the jobs gained in February came from professional services, business services, construction and health care.
This week also say the Dow Jones Industrial Average reach an all time new high, closing at 14,253.77, passing the previous record high set five years ago at 14,164.53 on Oct. 9, 2007.
This is all good news for the U.S. economy, but may be short lived as the sequestration deal that was approved by Congress in the Budget Control Act of 2011, kicked in on March 1. The sequestration, which calls for across the board cuts on federal spending could cause an estimated loss of 750,000 jobs, according to the Congressional Budget Office.
The Congressional Budget Office estimates that sequestration will cost the economy more than half a point off of the economic growth projected in 2013, threatening the economy’s recovery. And while Republicans argue that sequestration and other spending cuts are necessary to rein in America’s out-of-control spending, government spending has actually plateaued since President Obama took office.
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