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Principale » US job market looks solid 8 years after recession ended

US job market looks solid 8 years after recession ended

15 Juin 2017

Some 138,000 jobs were added to the US economy in May, according to the monthly jobs report released by the Bureau of Labor Statistics Friday morning.

Nonfarm payrolls increased 138,000 last month as the manufacturing, government and retail sectors lost jobs, the Labor Department said on Friday. March was revised down from 79,000 to 50,000, and April was revised down from 211,000 to 174,000. Revisions to data from March and April wiped out a combined 66,000 jobs from those months' tallies. Job growth is slowing as the labour market nears full employment.

USA private employers stepped up hiring in May, signaling that the labor market was rapidly tightening amid a firming economy, which could encourage the Federal Reserve to raise interest rates later this month.

Job creation kept pace with population growth in May, but it was not what financial markets were expecting, said Paul Diggle, senior economist at Aberdeen Asset Management.

Prior to the report, U.S. financial markets had nearly priced in a 25 basis points increase in the Fed's benchmark overnight interest rate this month, according to CME FedWatch. "But they might well influence what happens next".

Trump has yet to sign into law any policies that would change the trajectory of the job market or the economy from President Barack Obama's tenure. It has dropped four-tenths of a percentage point this year. Last month's drop came as people left the labor force. The unemployment rate was 4.3% for the month.

Gold prices rose Friday, extending weekly gains after a disappointing jobs report dashed any speculation of about three more rate hikes in 2017.

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However, analysts say the U.S. stands to gain more by participating in the development of renewable energy. Most of the growth is in support activities.

Against the background of balanced risks in US economy, Powell expected a total of three rate hikes this year, including the central bank's March rate hike.

The Atlanta Fed is forecasting GDP increasing at a 4.0 percent pace in the second quarter. Hourly earnings rose two and a half percent over the past year. From a year earlier, wages rose 2.5%.

It also suggests that the apparently tight labor market still has baggy spots.

The economy has added more than 500,000 jobs since Trump took office. Those people, who would have preferred full-time employment, were working part time because their hours had been cut or they were unable to find a full-time job. But the rate declined mainly because people stopped looking for work last month and so were no longer counted as unemployed. That has yet to materialize, but several economists are predicting that this will be seen in the next few months.

The report shows that the number of unemployed workers fell by about 230,000 people but that number is skewed.

But the report also showed some sectors were shedding positions, with the struggling retail sector employing 6,100 fewer workers and automakers losing 1,500, amid declining new vehicle sales. Brick-and-mortar stores are struggling to compete with Amazon and other online retailers; in recent months, analysts have begun talking openly about the possibility of a "retail apocalypse". "That's forcing them to increase compensation to stay competitive and hire temporary workers, but they are still having a hard time increasing prices to absorb the additional costs".

US job market looks solid 8 years after recession ended