Good News for the American Economy

Friday’s U.S. employment report came in strong, showing nearly 300,000 new jobs created during the month of April. The unemployment rate declined to 6.3 percent, a level not seen since September 2008. And while falling labor force participation, which I have written about previously, remains a concern, overall the announcement helps assuage concerns that the economic recovery is stalling out. What fundamental factors underlie the continuing improvement in the U.S. economy?