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US Jobless Rate Lowest In 49 Years At 3.7%

Unemployment in the United States fell to an all-time low of 3.7 percent during September, as the economy created 134,000 jobs during the month as per figures from the Department of Labor. This rate was present way back in 1969 when the economy was booming and has been possible now due to significant growth in jobs in both professional and service sectors like healthcare and construction. According to the latest figures, the average rate of hourly earnings has risen at an annual rate of 2.8 percent during September though it was 2.9% in August. The employment data for previous months of July and August have been revised to show that an additional 87,000 jobs have been created since the first report.

According to Labor Department, the recent Hurricane Florence, which battered the East Coast during September, was the main factor for the spurt in employment opportunity as the leisure and hospitality area lost nearly 18,000 jobs during this period though it was difficult to quantify the exact effect. In the aftermath of financial, there had been severe job losses but since then the number of jobs has increased by 20 million. But the low unemployment rate does not factor in the number of people not looking for employment as they are not classified as unemployed.

According to a report of Organization for Economic Cooperation and Development, a large number of the population remains at the outer edge of the labor market which could be due to the opioid crisis afflicting the nation after cannabis was legalized. The chief economist at Pantheon Macroeconomics predicted that fall in jobless rate will strengthen the case for US Federal Reserve to raise interest rates. This trend could continue to 2019 as workers will spend more which will lead to inflationary pressure. The trade war between the US and other nations like China, India and the European Union has not affected hiring as manufacturing jobs in September increased by several thousands.

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