Unemployment Falls To Lowest Levels Since Dot-Com Boom

Adjust Comment Print

"It will keep the Fed on its gradual normalisation path". Wages also grew by 0.3 percent, or 2.7 percent year over year, beating the 0.2 percent estimate. Wages in May were up 2.7 percent from a year ago, roughly in line with gains seen in recent months. That would bring it to levels last seen in 1953, the height of the economic boom after World War II.

The labor force participation rate, defined as the share of the population 16 years and older either working or seeking work, dropped minimally from 62.8 percent to 62.7 percent. But the unrounded figure is 3.75 percent.

People working part-time for economic reasons fell by 37,000 to 4.95 million.

Fannie Mae Chief Economist Doug Duncan said the May jobs report "portrayed a solid labor market" in which wage growth saw its biggest monthly gain since this past January.

Martha Gimbel, director of economic research at Indeed, the job-listing site, said some of the fastest-growing search terms on the site this year are "full-time" and "9-to-5 jobs", evidence that many people want more work hours.

More news: Under Growing International Pressure, Maduro Releases More Venezuelan Political Prisoners

"The strength of the labor market supports our forecast for the Fed to raise rates three more times this year", said Ryan Sweet, a senior economist at Moody's Analytics in West Chester, Pennsylvania. The issue this raises is whether jobs that would normally be held by people with little or no skill are indeed filled.

"If you just stay around, you have less bargaining power", Slok said. That suggests that many employers have yet to worry about their workers being lured away.

Eight years of job growth, however, have shrunk the pool of "discouraged" workers, and broader definitions of unemployment all show strong progress. In April, it stood at 12.9 percent, down from 14.7 percent in April 2017. The black unemployment rate has been steadily dropping since 2010, when at one point the unemployment rates for black men were in the double digits in every age category. When there was more slack in the system, teenagers had to compete with 50-somethings for scarce jobs.

Economists have been predicting that wages would start to shoot up as companies found it harder to find workers to fill openings and tried to keep star employees from leaving for other firms.

Some analysts believe that the positive jobs report could drive the US Federal Reserve to hike interest rates at its upcoming meeting later this month. Their ranks have fallen by almost one-third in the past year.

More news: German police shoot ‘rampaging’ man near Berlin Cathedral

And there may be more of those workers available.

Yet as the labor market tightens further and wages climb, businesses are more likely to replace workers with automation or combine two jobs into one, Baker says. He has never issued such a Twitter post before.

The Labor Department reported gains of 31,100 retail, 31,700 health care, 25,000 construction, and 18,000 manufacturing jobs. That means traders were probably making investment decisions based on signals they took from Trump's post.

"This is the last shoe to drop in the labour market", said Torsten Slok, chief worldwide economist at Deutsche Bank.

"If not, you end up with some people getting information ahead of other people", Fratto continued. But Friday's jobs report suggests that they are taking chances with pockets of the unemployed and underemployed whom they had previously ignored. Stocks on Wall Street were trading higher.

More news: 5 dead, nearly 200 sickened in romaine lettuce E. coli outbreak

Comments