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

Share
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.

Share

Advertisement

Related Posts

Europa League: Keown reveals Arsenal player that was "problem" for Unai Emery
Meanwhile, NAIJ.com had earlier reported that Arsenal recorded a 3-0 victory over Qarabag in the Europa League . He has good ability with the ball, good vision and now I understand why Arsenal paid a lot of money for him.

EA ‘closely monitoring’ rape claim against Federation Internationale de Football Association 19's Cristiano Ronaldo
He said a psychiatrist had diagnosed Ms Mayorga with post-traumatic stress disorder. An article by German weekly Der Spiegel outlines the alleged events in full.

‘Jersey Shore’s The Situation Sentenced To Prison For Tax Evasion
The cast were known for their drunken antics and the phrase they used to describe their lifestyle: "gym, tan, laundry". Jersey Shore star Michael " The Situation " Sorrentino has been sentenced to eight months in prison for tax evasion.

So everyone got the name of Harry and Meghan's dog completely wrong
They won't be able to hold a koala like Prince Charles and Camilla did when they visited Adelaide in 2012. One-year-old Edith Morgan celebrated her first Royal Visit by meeting Prince Harry .

Susan Collins will vote to confirm Brett Kavanaugh to the Supreme Court
The judiciary committee voted to advance Kavanaugh's nomination to the full Senate, which is expected to attempt a vote Friday. Ford accused Kavanaugh of sexually assaulting her at a party in suburban Maryland when both were in high school 36 years ago.

Rosa weaker, but expected to flood Mexico and U.S. Southwest
This could bring "life-threatening flash flooding" and "dangerous debris flows and landslides", the hurricane center said. Gary Herbert declared a state of emergency Tuesday evening in advance of potential flooding from the remnants of Rosa.

Typhoon Kong-Rey unlikely to directly hit Taiwan: Central Weather Bureau (CWB)
EDT (0435 UTC) and the Atmospheric Infrared Sounder or AIRS instrument aboard analyzed cloud top temperatures in infrared light. Japan's Meteorological Agency has issued a red weather warning for Okinawa, southern Kyushu Island and the Amani region.

Doorstop turns out to be meteorite worth $100K
The man, who has asked to remain anonymous, knew the 22-pound rock came from outer space ever since he bought the house in 1988. The man told Sirbescu that he kept the rock for the next 30 years, even after moving away from the farm.

Tail of hurricane Leslie to lash Britain with wet and windy weather
Leslie could become a weak hurricane based on the latest forecast, but it will not threaten land as a tropical system. Leslie is sending large swells to Florida , but is not a direct threat to the U.S.

Floyd Mayweather heaps praise on "warrior" Conor McGregor ahead of Nurmagomedov fight
McGregor has not fought since, taking a break from sport and being stripped of his featherweight and lightweight titles. "That's what the fans like to see".

© 2015 ExpressNewsline. All Rights reserved.