The rebound

The U.S. economy has been showing its strength in just about every possible indicator except jobs. But last week's employment figures showed the so-called "jobless recovery" is, indeed, adding jobs at an exceptionally good rate. So far this year, the numbers show, nearly 1.2 million jobs have been added in virtually every segment of the nation's economy.

This is good news on several fronts. More Americans are working. The rebound of business and industry is creating more job opportunities. Demand for consumer goods is growing, adding to the need for additional production workers. The stock market is attracting investors again.

The numbers also help diminish concern about outsourcing of jobs. This aspect of America's trade relations with the rest of the world is amplified in a Wall Street Journal editorial and a column by Alicia Burns elsewhere on this page. In her analysis, Burns explains that through "insourcing" more jobs have been created by foreign companies in the United States than have left the country as U.S. producers tap overseas labor forces to provide affordable consumer goods.

The strong economic news of late adds fuel to speculation that the U.S. economy may be turning inflationary. The Federal Reserve Board is keeping a close eye on this and is widely expected to approve a quarter-point increase in the Fed's key funds rate when it meets at the end of this month. It would be the first rate increase in four years.

Low Fed rates have been a crucial part of the nation's economic recovery. These low rates also have been a boon to borrowers, especially consumers who have refinanced mortgages and purchased big-ticket items such as automobiles and appliances.

While any increase in Fed rates will be aimed at holding the economy in check, higher interest would be welcome news for some investors, particularly senior citizens who depend on funds socked away in certificates of deposit and other interest-sensitive investments.