Unemployment lowest in United States since 1969

Adjust Comment Print

The September jobs report was either noteworthy or disappointing, depending on how you look at it.

Some economist have dismissed weakness in the employment numbers, saying the data was impacted by Hurricane Florence, which hit the east coast in mid-September.

Mark Hamrick, a senior economic analyst at Bankrate says the positive wage trend should accelerate for workers as long as the patterns of growth and hiring stay intact.

While Florence probably affected the figures during the month, hiring may settle into a more sustainable pace after a strong run that has pushed the economy closer to full employment.

The U.S. central bank raised rates last week for the third time this year and removed the reference in its post-meeting statement to monetary policy remaining "accommodative". The unemployment rate for those who have a high school diploma and no college attendance was 3.7 percent, which is the lowest since April 2001.

The number of unemployed people fell by 270,000 to six million, with the largest drop among adult women to 3.3 per cent, it said. However, the change was little compared to August's job report.

In a separate report on Thursday, the Commerce Department said new orders for USA -made goods recorded their biggest increase in almost a year in August, but signs of weakness in business spending on equipment suggested manufacturing could be slowing. Some companies are starting to boost wages - Amazon.com Inc. being among the latest to pledge raises - to attract or retain workers.

Economists will also be eyeing the all-important wage figures, as a tightening USA labor market has pushed pay higher.

Dairy Farmer: Trump’s USMCA Trade Deal Will Have 'Huge Impact'
It was the single-most important element driving a Canadian desire to gain a deal . "And every time it does that it's cumulative and it has greater impacts".

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

The jobless rate for prime-age workers - ages 25 to 54 - declined to 3 percent.

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.

Even with unemployment now at a historic low, average hourly pay increased just 2.8 percent from a year earlier in September, one tick below the yearly gain in August. The next round of jobs data will come four days before Election Day, by which point most voters' minds may be made up. So far this year, monthly job growth has averaged 208,000, up from a pace of 182,000 for all of last year. Job gains occurred in professional and business services, in health care, and in transportation and warehousing.

The escalating trade war between the USA and China does not appear to have affected hiring in factories.

This comes despite President Donald Trump's tariffs on goods from countries including China and those of the European Union.

The politically sensitive goods trade deficit with China surged 4.7 percent to a record high of US$38.6 billion. The trilateral trade agreement between the United States, Canada and Mexico was salvaged in an 11th-hour deal on Sunday.

Comments