Economy grew rapidly in fourth quarter — will jobs follow?

The U.S. economy grew rapidly in the last three months of 2010, as consumer spending picked up.

The nation's gross domestic product rose by 3.2 percent in the fourth quarter, a government report found. It had risen 2.6 percent in the third quarter.

Consumer spending was the driver. It grew at an annual rate of 4.4 percent -- the fastest pace in nearly five years. And a narrowed trade deficit also helped boost economic growth.

The news raises hopes that companies could soon begin hiring more workers. Spending on software and equipment has been surging, and it continued to rise in the last quarter. But so far, investments in human resources haven't matched those gains.

Some have argued that that's because of a simple lack of demand. But with consumer spending now rising, the debate may shift to other explanations: a mismatch between the types of jobs available and the skills that workers have; or a shift in power relations -- exacerbated by the effects of offshoring and mechanization--that gives employees less clout in the workplace.

(AP Photo/Mary Altaffer, file)