US unemployment rate at its lowest level
Data released today by the Bureau of Labor Statistics (BLS), one hour before the New York market opened, show an increase in the non-farm payrolls of 134,000 in September and a low rate of US unemployment. In addition, it showed that the unemployment rate in the United States fell to 3.7% in September, the lowest level since December 1969.
The figures suggest lower inflationary pressure in the world’s largest economy than was estimated on Wall Street.
However, the monthly increase in jobs could have been higher, but was slowed by the temporary layoffs caused by Hurricane Florence, although it is still much lower than the 180,000 increase that the market predicted.
Fears that the annual growth of remuneration will cross the 3% barrier also proved to be unfounded, with a 12-month rate of increase that drops from 2.9% to 2.8%.
The interest rate on Treasury bonds rose had been going up before BLS was published, amid concerns that higher inflationary pressure would lead to tougher action by the US central bank, the Federal Reserve.
New minimums for the US unemployment rate
Experts see the hiring drop in September as a temporary problem in the US economy that Federal Reserve Chairman Jerome H. Powell called “extraordinary“. Many other data points remain strong. Unemployment claims fell to a 49-year low last week, and hiring in July went from 147,000 to 165,000, and in August from 201,000 to 270,000.
“We have been dancing around this record of unemployment for several months. It was inevitable, “said Andrew Chamberlain, chief economist at Glassdoor. “A tax reduction of 1.5 trillion dollars is done when the economy is close to full employment and is working quite well.”
Even so, the strength of the US labor market was observed after the rise in employment in July and August, and the drop in the unemployment rate from 3.9% to 3.7%, which shows how companies continue to incorporate workers at a rapid pace.
You can read also: