There are now 3.2 million more Americans earning paychecks than there were 12 months ago. That additional cash tends to boost consumer spending, which drives about 70 percent of economic growth.
Americans are feeling better about the economy. Consumer confidence jumped in January to its highest level in a decade, according to a survey by the University of Michigan. And consumers increased their spending during the final three months of last year at the fastest pace in nearly nine years.
Companies that benefit most directly from consumer spending have ramped up hiring since the fall, when gas price savings began to pile up in Americans’ bank accounts. Retailers added 45,900 jobs in January, hotels and restaurants 37,100.
Construction companies have been a source of big job gains. They’ve added 308,000 jobs in the past 12 months, nearly 10 percent of the overall gain.
Mark Vitner, an economist at Wells Fargo, says shifts in how Americans shop might have given the job market a temporary lift. Online shopping has boosted warehousing, shipping and trucking jobs during the winter shopping season, Vitner said.
