The United States and San Francisco Bay Area job markets are showing signs of strength as the country embarks on its second year of economic recovery. ADP, the nation’s largest outsourcing solutions provider, recently reported that the United States added 297,000 jobs to private company payrolls during December 2010. Over 260,000 jobs were created by small to medium sized businesses. The December monthly increases were the largest in ADP’s history of reporting the figures.

Unemployment seems to be dipping, as well. The Department of Labor has reported a continued downward trend in seasonally-adjusted weekly initial unemployment claims over the past two years with some of the largest improvements coming the past few months. As reported by the major news outlets, unemployment rate in the United States has, in fact, dropped to 9.4%, which is the lowest level in 19 months. Some have pointed out that this recently announced dip is due to a decrease in the number of job seekers. Still, even the most pessimistic critics concede that the United States economy has been adding jobs.

The job market is looking stronger here in the San Francisco Bay Area. While San Francisco/Oakland/Fremont had the second largest United States metropolitan area drop in jobs on a year-over-year basis during November, demand for skilled workers is increasing significantly. Many Bay Area employers are rolling out or reintroducing candidate referral bonuses where hiring companies will pay their employees bonuses for referring qualified candidates that are hired and retained by the firm for a minimum period of time. These bonuses typically range from $1,000 to $3,000. The need to use referral bonuses is best supported by the relatively low November 2010 unemployment rates in the Tri-Valley cities, with Dublin at 6.9%, Danville at 5.9%, Pleasanton at 5.7%, and San Ramon at 4.7%.

While the overall job market is improving, many observers are disappointed that job growth has not been stronger. Given that the United States economy has been expanding since 2009, many remain worried about the lower-than-expected rate of job growth. Some point to the rise in the minimum wage rates in many states, extended unemployment benefits, and the recently passed healthcare reforms as the main reasons for the crimp in the job market. United States Federal Reserve Chairman Ben Bernanke has used this disappointment to push for another $600B stimulus package to buy bonds and boost the financial sector as part of what is referred to as QE2 or Quantitative Easing 2.

What are the hot jobs in 2011? Many job sectors are expected to see increases in 2011, including accountants, web developers, sales managers, computer software engineers, registered nurses, and financial advisers. The healthcare and hospitality industries are adding the most jobs as the country heads into 2011.

Many economists have noted that the unemployment rate for college graduates is about half the rate as the entire United States. While tuition and fees are increasing at colleges and universities across the country, there has never been a more opportune time to get a college degree and improve one’s hirability.