United States jobless rate at its lowest since 1969
May 06 2019
This anticipated April jobs report is good news for the Trump administration, as it shows the continued solid economic growth since 2017.
The American economy smashed expectations in April; adding over 263,000 new jobs that sent the unemployment rate down to just 3.6% -the lowest level on record since December 1969. Yahoo Finance's Dan Roberts, Akiko Fujita, and Kristin Myers discuss the latest numbers with Markus Schomer, chief economist at Pine Bridge Investments. "The result comes on the heels of the announcement that the United States economy grew at a much better rate than expected in the first quarter, and Trump's performance on the economy becomes one of his prime selling points for next year's general election".
Average hourly earnings rose 0.2% from the prior month after a revised 0.2% rise in the prior period.
Will Friday's strong labor-market report convince the Federal Reserve to rethink its decision to pause on raising interest rates for the foreseeable future? Analysts anxious that the economy might barely expand in the first three months of the year.
The numbers signal that economic jitters late previous year, sparked by concerns over trade tensions with China and warning signs of a potential global economic slowdown, may have eased. The unemployment rate for women fell last month to 3.1 per cent, the lowest point since 1953. "While payroll gains are handily exceeding the threshold necessary to drive the unemployment rate lower, the drop in April - to 3.6 percent - is largely attributable to declining participation", Carl Riccadonna and Yelena Shulyatyeva, economists, said.
Growth above 3 percent per year is the fastest rate of wage gains in almost a decade, but it's only 1 percentage point higher than the cost of living, which is increasing almost 2 percent each year.
USA stocks rose after the report, while the dollar and Treasury yields were lower. Manufacturing sector payrolls rebounded by 4,000 jobs after being unchanged in March.
This past month of strong job growth was further evidence that February's report of a slightly lower increase in 56,000 jobs was an aberration. This record low unemployment, not seen in an entire generation, demonstrates the economy's robust growth.
The payroll gains were somewhat uneven, with construction, health care, and professional and business services posting gains while retail employment fell by 12,000 for a third-straight decline and manufacturing showed a tepid increase of 4,000.