The unemployment rate is the lowest it’s been since 1969. Here’s why

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The unemployment rate is the lowest it’s been since 1969. Here’s why

Compared with a year ago, average hourly earnings were up 2.8%, slightly less than the 2.9% in August, owing to a tougher comparison.

One of the main factors was likely to be Hurricane Florence, which struck North and SC at the beginning of September, closing thousands of businesses.

The Fed raised rates last week for the third time this year and removed the reference in its post-meeting statement to monetary policy remaining "accommodative".

"That said, 134,000 job is far from a bad employment number and with August's being revised up by another 69,000, the labour market looks extremely healthy and provides further evidence of a booming economy".

The result is that our articles are reaching fewer people at a time when we need genuinely independent news more than ever. According to the BLS, the average monthly gain in jobs for the past 12 months has been 201,000.

USA unemployment has fallen to 3.7%, its lowest rate in 48 years, despite the effects of Hurricane Florence. Job gains in July and August were revised up a combined 87,000 from the original reports.

The US economy needs to create roughly 120,000 jobs per month to keep up with growth in the working-age population. The average workweek was unchanged at 34.5 hours. The employment rate for people with disabilities has also jumped sharply over the past two months.

Andrew Chamberlain, chief economist of the employee review site Glassdoor, says the salaries people have been reporting through their platform show stronger growth than official measures indicate. The strength of that gain, if it can be sustained, would suggest that the low unemployment rate is pressuring more companies to raise pay in order to attract and keep workers.

The weakness in payrolls last month is not corroborated by other labor market data. Bond yields rise when prices fall, and they spiked Wednesday to their highest level in over seven years after a strong private-payroll report from ADP and bullish comments from the Federal Reserve's chairman, Jerome Powell. Black teens had a drop of 0.8 percentage points in their unemployment rate to 19.3 percent, also the lowest on record.

Average hourly earnings are forecast to have increased 0.3 percent in September after leaping 0.4 percent in the prior month. This is the lowest it has ever been, with the exception of May when it hit 5.9 percent. That category saw an 18,200 decrease in payrolls, according to the report. Amazon responded on Tuesday by raising its minimum wage to $15 an hour.

While surveys have shown manufacturers growing more concerned about an escalating trade war between the United States and China, that does not appear to have affected hiring.

In fact, the Fed's latest survey of national business conditions reflected concerns about labour shortages that are extending into non-skilled occupations as much as about tariffs.

The US and China had already imposed tariffs on $50 billion worth of each other's goods. The United States has since struck a trade deal with Canada and Mexico.

The retail sector shed 20,000 jobs, largely from garden and building material supply stores, after having showed relatively strong growth in the first half of the year.

That figure could rise in the coming months.

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