As we end 2009 and enter a new year there has been another small indication that the economic hard times of the last 2 years are beginning to come to an end. New figures from United States Commerce Department have been released, showing that for the fifth straight month, personal income has increased in the U.S. After crashing early in 2009, personal income increased by 0.4 percent in November.
While personal income has increased, high unemployment rates continue to plague the American economy. The income increase appears to be from number of hours worked, rather than new job hires. This is still a good sign because as the economic climate improves, employers are likely to respond by increasing the hours of those already in their employ rather than immediately hiring for new positions. Increasing the income of existing employees increases the spending of those employees and thereby improves the overall economic climate.
This news should be taken with caution. Economic recovery continues to be a long, slow, and painful process. Keeping on a path of saving more money and paying down debt is still the tendency of those who are wary of the economic roller coaster the United States has been riding. As income increases the ability of consumers to get out of credit card debt becomes easier and this is the desirable goal for so many at this time. Hopefully in the next few months, the unemployment numbers will begin to show decrease allowing more Americans to feel more secure that the economy is turning around.
