Thursday , June 8 2023

Jobs in the United States are growing; Since 2009, the biggest wage increase


WASHINGTON (Reuters) – US labor has fallen sharply in October, and wages show the highest annual earnings in the 9-1 / 2 year period, suggesting further labor market tightening, which could spur the Federal Reserve to raise interest rates in December.

The monthly employment report of the Ministry of Labor also showed on Friday that the unemployment rate was 49 percent, 3.7 percent, 711 thousand people entered the labor market and trust in the labor market.

Persistent labor market forces have increased fears on the health of the economy after weak housing and business expenses. President Donald Trump welcomed the robust labor report that arrived less than a week before the mid-term elections and decides who directs the United States Congress.

"These are incredible numbers," Trump tweeted.

Non-farm labor costs increased by 250,000 jobs last month as work in the leisure and hospitality industry rebounded after the hurricane was soaked in North and South Carolina in mid-September.

In the building industry, professional and business services, they also achieved significant gains in payroll and manufacturing, where employment increased within a maximum of 10 months.

The economy created 118 000 jobs in September.

Economists interviewed by Reuters predict that labor costs rose to 190,000 in October and the unemployment rate would not have changed by 3.7 percent. The Ministry of Labor said that by mid-October, the hurricane strike from Florida armor "did not show appreciable impact on October's national employment and unemployment estimates."

Average hourly wages rose by 5 percent or 0.2 percent in October, following a 0.3 percent rise in September. This increased the annual growth rate of wages to 3.1 percent, the biggest gain since April 2009, from 2.8 percent to September.

Employers also increased staff hours last month. The average working day rose 34.5 hours on 34 September.

"The report presents a prosperous US economy with enough wage inflation to keep the Fed at a minimum in the future for the future," said David Kelly, senior global strategist at JPMorgan Funds in New York.

The dollar .DXY was traded in a higher currency. Wall Street stocks declined while US Treasury yields rose.

The strong annual growth in wages reflects the other data released this week, showing quarterly wages and salaries from mid-2008. Hourly compensation also increased rapidly in the third quarter.

Stiff wages support the view that inflation is moving around for a while around the Fed's 2.0 percent target. The CPI of personal consumption expenditure excluding the volatile food and energy components, which is the Fed's preferred inflation measure, rose by 2.0 percent in five consecutive months.

GRAPHICS: Growth in US wages –

People are waiting for the station at the Executive Branch Job Fair at the Conservative Partnership Institute at the Dirksen Senate Office in Washington on June 15, 2018. REUTERS / Toya Sarno Jordan


The Fed is expected to not rise at the policy meeting next week, but economists believe that October's strong labor market data show US Central Bank growth in December. The Fed raised the borrowing costs for the third time this year in September.

Some economists have said that officials with low unemployment and rising wages are likely to have a moderate inflationary impact.

"The 2019 risk is that the Fed will raise the rate of interest rate hikes," said Joe Brusuelas, a leading economist at RSM in New York. "Market participants probably have to adapt their expectations."

Employers who seek to find skilled workers increase wages. Record has 7.14 million open jobs.

Online Retail Giant Inc. (AMZN.O) announced last month that the minimum wage will raise US $ 15 to US $ 15 per hour from November. Workers of the United States Steel Corp. (X.N) are set up to receive a serious salary increase.

Employment gained an average of 218,000 jobs per month over the past three months, a doubling of about 100,000 to keep pace with the growth of the working-age population.

We can see that the economy will be supported at least early 2019 when gross domestic product is expected to slow down considerably as Trump administration's $ 1.5 trillion tax cut is fading.

The rate of labor market participation or the proportion of working-age Americans who are working or earning jobs rose 62.9 percent last month from 62.7 percent in September.

A wider range of unemployment, including those who want to work, but who have resigned from the search and part-time workers because they do not find full-time work, are down by 7.4 percentage points, which is a low 17 in August.

The employment-population ratio rose to 60.6 percent, the highest since January 2009, from 60.4 in September.

Last month, the number of people working in the leisure and hospitality sector increased by 42,000, since it remained unchanged in September. Retail payrolls grew to only 2400 on the decline in number of petrol stations, sporting goods and music.

Construction companies employed 30,000 people in October. Jobs in the industry have grown, despite the weak housing market. Government payrolls increased in 4,000 jobs.

Manufacturing in manufacturing grew by 32,000 in October, after having expanded by 18,000 working days in September. The Protectoral Trade Policy of the White House has so far not influenced the manufacturing sector, which has contributed to capacity constraints in factories.

The United States is shut down with a bitter commercial war with China, which has led to dictatorships. Washington also imposed customs duties on other products of the European Union, Canada and Mexico, and requested retaliation.

Despite the protectionist measures, trade deficit continues to deteriorate. According to the Ministry of Commerce, the trade gap in September increased by 1.3 percent to $ 54.0 billion in September, a fourth to one month.

"Tariffs have lessened America's appetite appetite," said Emily Mandel, economist at Moody's Analytics at Westwood in Chester. "Trade deficit remains in the economy."

Lucia Mutikani's Reports; Editing Clive McKeef and Paul Simao

Standards:Thomson Reuters Trust Principles.
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