US Unemployment Rate Falls To 49-Year Low Of 3.7 Percent

US Unemployment Rate Falls To 49-Year Low Of 3.7 Percent

US Unemployment Rate Falls To 49-Year Low Of 3.7 Percent

Mornings with Maria panel on the September jobs report and the outlook for the US job market. That's surely the impact of Hurricane Florence, which probably accounted for some of the miss in the payroll number, which comes from a separate survey of businesses.

"We are seeing some acceleration in average hourly earnings, maybe not as much as we would expect given how tight labor markets are", said Ben Herzon, an economist for Macroeconomic Advisers.

The modest job gains came after private payrolls firm ADP said hiring surged 230,000 in the month, but the two reports often diverge since they calculate employment differently.

The Fed raised rates last week for the third time this year and removed the reference in its post-meeting statement to monetary policy remaining "accommodative".

The last time the U.S. jobless rate was so low preceded more than a decade of economic pain tied to rising price pressures and efforts to rein them in.

Thursday's claims report also showed the number of people receiving benefits after an initial week of aid fell 13,000 to 1.65 million for the week ended September 22.

Meanwhile, record imports drove the United States trade deficit up for the third straight month in August.

In a separate report on Thursday, the Commerce Department said new orders for US -made goods recorded their biggest increase in almost a year in August, but signs of weakness in business spending on equipment suggested manufacturing could be slowing.

Wages increased in line with forecasts.

The FOMC will continue to gradually raise the fed funds rate in 2019 as the job market continues to tighten. That reversed the bulk of the increase from the prior week when claims were boosted by Hurricane Florence, which slammed North and SC in mid-September.

The jobless rate for prime-age workers - ages 25 to 54 - declined to 3 percent.

Manufacturers, which are more dependent on foreign markets than other industries, added 18,000 jobs last month, a sign that President Donald Trump's trade fight with China and other countries is having little effect on hiring. That largely offsets the weak September showing.

With September's increase below the 0.5% gain recorded during the same time last year, that lowered the annual increase in wages to 2.8% from 2.9% in August, which was the biggest rise in more than nine years.

From the low point in the aftermath of the financial crisis, the number with jobs has increased by nearly 20 million.

Average US hourly earnings increased eight cents, or 0.3%, in September after rising 0.3% in the previous month.

The escalating trade war between the U.S. and China does not appear to have affected hiring in factories.

Job gains were noted in healthcare, up 26,000, transportation and warehousing, up 24,000, and construction, up 23,000. African-Americans, Latinos and other groups that often face discrimination are experiencing some of their lowest rates of joblessness on record.

The trilateral trade agreement between the US, Canada and Mexico was salvaged in an 11th-hour deal on Sunday.

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