Has this economy reached 'full employment'?

06 May, 2018, 00:01 | Author: Shannon Aguilar
  • Unemployment drops, but wage growth remains sluggish

USA hiring rebounded in April and the unemployment rate dropped below 4% for the first time since 2000, while wage gains cooled by more than forecast, a sign that the labor market still isn't tight enough to spur inflation.

The unemployment rate has dropped below 4 percent for the first time in 18 years, and the truth of the matter is we have no idea how much further it can go.

United States jobs growth slowed in April.

"Jobs in the U.S are doing so well", President Donald Trump tweeted this morning, "Americans receiving unemployment aid is the lowest since 1973". Employers, especially in the construction and manufacturing sectors, are increasingly reporting difficulties finding qualified workers. They clocked in at just 2.6 percent over last year's levels (below the expected 2.7 percent print).

The average workweek for all employees on private nonfarm payrolls was unchanged at 34.5 hours in April. It stands to reason that wage growth will continue to accelerate as the untapped portion of the labor pool continues to evaporate.

"We've continued to add jobs routinely every month for so long, and the unemployment rate we have reached is unbelievable".

Average hourly earnings rose by 4 cents, settling at $26.84.

Anti-North Korean activists scuffle with South Korean police near border
The North Korean defectors do not trust Kim's intentions and want to keep fighting for the rights of their former compatriots. The President said a date and location for the summit have already been agreed on and will be announced soon.

IPL Cricket: Watson and Dhoni star as Super Kings go top
Shane Watson and MS Dhoni both struck magnificent half-centuries to move CSK one step closer to securing a playoff berth. In the match, Watson and Dhoni gave a class in power hitting while helping CSK to 211 for 4 after put to bat by Delhi.

Cavaliers, Raptors renew playoff rivalry beginning May 1
Despite the Cavs ending the Raptors season the last two season, Charles Barkley is fully in the camp of the team from the 6ix. At this point in his career James no doubt considers any season that does not end with a championship parade to be a failure.

Unemployment in the US hit a post Great Recession landmark, according to figures released Friday, while a separate report showed increased factory orders but declining capital investment for new factory equipment.

But now, unemployment is lower than at any point since December 2000; and wage growth and inflation are resolutely tepid. Initially, the agency showed the sector adding jobs in March, but Friday's release shows that employment in the industry remained flat at 1,135,500 jobs in both February and March.

Economic analysts had predicted a gain of more than 190,000 jobs in April.

"It would seem as employers add roughly 200,000 jobs to the economy each month, that they're now tapping into populations that might not have been their first go to for a job candidate than say a year ago", Barrera said.

The low unemployment rate means that the still-depressed levels of participation in the work force are hard to chalk up to a shortage of jobs. Still, the data will probably keep the central bank on track to raise interest rates in June for the second time this year and once or twice more after that in 2018.

The economy has been invigorated by the "Trump effect"-a boost to confidence in the economy linked to Trump's cuts to regulations, taxes, and planned investment in infrastructure".

The report indicates another month of solid job gains for an economy that has been expanding for nearly nine years. An acceleration could force Fed officials to raise rates more aggressively, which would raise the cost of vehicle loans and credit card debt. For prime-age workers, or people in the age group of 25 to 54, it dipped to 82 percent from 82.1 percent, led by a drop among women.

Recommended:



Popular

Woods makes solid start as Peterson leads at Quail Hollow
Casey's DraftKings price of just $8,900 allows you to comfortably roster other top golfers such as Rory McIlroy or Justin Thomas . We saw them roll out contests for the Match Play event a month ago, so maybe they will take on the Zurich Classic next season.

Tiger Woods Struggles at Wells Fargo
But while Woods focused on what he missed on the greens, he neglected to mention that he also made things work on a handful. I played a lot of golf heading into Augusta, more golf than I thought I would be able to play, because this is all new.

Walmart to buy 73% of Flipkart in India's biggest e-commerce takeover
Now, however, with a sale of the company near, it needed to become a private entity in Singapore to avoid regulatory hurdles. As per both reports , Google's parent Alphabet too will be participating in the deal and will pump in around $3 billion.

Tornadoes strike Kansas, Oklahoma as 'destructive' severe weather threat remains
While things have been pretty scattered through TV5-Wake Up, another more widespread round of showers is moving in from the west. Today other than a few non severe storms this morning we will be mostly cloudy today with highs in the upper 70s-mid 80s.

James Harden makes bold Houston claim after shock Utah defeat
Exum also defensively harassed Harden and the Rockets' other All-Star guard, Chris Paul . Credit to Utah, they came out strong, imposed their will, and hit their open shots.

Pep Guardiola jokes Manchester City could spend 'maybe £1 billion' in summer
In contrast, West Ham face an anxious finale to a troubled season as they fight to avoid the drop in their last three games. I hope we'd have done much better but I have to say Manchester City have done this to better teams than us this season.

Snap CEO Evan Spiegel Stands By Redesign Despite Rocky Q1 Results
And after months of standing by the changes, the company last month was forced to backtrack, promising to redesign the redesign. Failing to capitalize on Facebook's recent missteps, Snap's first-quarter earnings and usership missed analyst expectations.

Starting XI: Real Madrid v Bayern
Tolisso forced another save from Navas before Rodriguez had another effort blocked as Bayern sought a clinching goal. Keylor Navas made a spectacular save on David Alaba from a tight angle just moments after Madrid's goal .

Dana White confirms location for potential Conor McGregor-Khabib Nurmagomedov fight
Whether it comes to fruition or not, UFC 227 would offer an attractive landing for Diaz's return. You've got to do it in Vegas".

Swipe Right: Facebook Just Announced It's Launching a Dating App (Sort Of)
The announcement sent the stock of Match Group , which owns properties such as Tinder , OkCupid, and Match.com, down 18 percent. That could potentially allow it to match people more effectively than rival sites with less data at their fingertips.