Unemployment rate hits record low

Unemployment rate hits record low

Figures from the Department of Labor also showed the USA economy created 134,000 jobs during the month, fewer than were expected.

The Labor Department says employers added just 134,000 jobs, the fewest in a year, though that figure was likely lowered by Hurricane Florence.

The economy needs to create roughly 120,000 jobs per month to keep up with growth in the working-age population. But Morgan Stanley said the storm likely affected too limited of an area and struck too late during the week of Labor's survey to have a meaningful impact. Bond yields spiked following the jobs report, with the benchmark 10-Year Treasury hitting 3.24 percent - its highest level in more than seven years. The unemployment rate hit 3.5 percent in December 1969, after a streak of brisk economic growth had kept joblessness at or below 4 percent for four years.

The U.S. economy is humming, unemployment is skating near a half-century low and businesses are eager - desperate, in some cases - to hire.

Many economists have forecast that Hurricane Florence, which flooded parts of North and SC last month, depressed September's job growth by roughly 30,000.

"No one at the Fed thinks unemployment near 3 percent is sustainable", Mr Shepherdson said.

The fallout from Florence was apparent in employment at restaurants and bars, an industry where most workers only get paid if they show up to work.

The average workweek for all private employees was unchanged at 34.5 hours.

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If more people start looking - and don't immediately find a job - the government will count them as unemployed. So far this year, monthly job growth has averaged 208,000, up from a pace of 182,000 for all of last year.

The weakness in payrolls last month is not corroborated by other labor market data.

Economists also noted that the initial September payrolls growth estimate tended to be revised higher. The dollar .DXY was little changed against a basket of currencies, while stocks on Wall Street were trading lower. Black and Hispanic unemployment rates continue to hover near record lows. Average hourly pay in September rose 2.8 per cent from a year earlier.

Powell said more wage growth is "quite welcome" and the Fed isn't anxious yet about higher pay causing inflation.

The labor market, which is viewed as being near or at full employment, is steadily boosting wage growth, which could help to support consumer spending as the stimulus from the Trump administration's $1.5 trillion tax cut package fades. Amazon responded on Tuesday by raising its minimum wage to $15 an hour. "There are plenty of new, high paying jobs available in our great and very vibrant economy", Trump said in a September 20 tweet.

Manufacturing payrolls increased by 18,000 in September after rising by 5,000 in August. Health care and transportation and warehousing have also continued their strong gains, adding 26,000 and 24,000 jobs respectively in September.

Washington last month slapped tariffs on $200 billion worth of Chinese goods, with Beijing retaliating with duties on $60 billion worth of USA products.

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