Unemployment in America is the lowest in 18 years

The number of employees in non-farm payrolls in the United States increased by 223,000 in May - the government's Office of Labor Statistics (BLS) has informed. The unemployment rate fell to 3.8%, reaching the lowest level in 18 years.

Unemployment in America is the lowest in 18 years


After two weaker months, the American "payrolls" this time met the expectations of economists who expected a reading of 185 thousand after May.

The increase in employment in the private sector amounted to 218 thousand and also turned out to be higher than the median forecasts of economists (+185 thousand). A solid increase in the number of jobs was recorded in industry (+47 thousand) and in construction (+5,000). But as usual, the overall performance was determined by the services sector, where 171,000 jobs were found. people.

The average length of working time did not change and amounted to 34.5 hours per week. The average hour rate increased by 0.3% m / m and 2.7% y / y, which was broadly in line with analysts' expectations. The wage growth in the United States remains so low that (at least in theory) it does not threaten the rapid acceleration of price inflation.

The unemployment rate calculated in a separate study fell from 3.9% to 3.8%. This is the lowest reading since April 2000! The survey showed an increase in the number of employed by 293 thousand and a decrease in the number of unemployed by 281 thousand. This means that the economically inactive population (ie people who do not work and do not seek employment) increased by 170,000.

Almost 96 million Americans of working age remain without paid employment and do not even look for a job. The professional activity rate (ie the ratio of the employed and the unemployed to the working age population) decreased by 0.1 percentage points. percent. up to 62.7%. Thus, the very low unemployment rate in the US does not necessarily indicate the strength of the American labor market.

SHARE THIS

Comments

Popular Posts