USA unemployment rate hits 16-year low in May
- Author: Zachary Reyes Jun 03, 2017,
Jun 03, 2017, 4:50
Against the background of balanced risks in USA economy, Powell expected a total of three rate hikes this year, including the central bank's March rate hike. The unemployment rate is forecast to be unchanged at a 10-year low of 4.4 percent.
Despite a slower pace of hiring in the past few months, the U.S.is still adding more than enough new jobs to keep up with the natural growth in the size of the labor force. More Americans stopped looking for work while the number of people with a job fell too.
"As our committee has heard from business leaders over the past few weeks, permanent, pro-growth tax reform is the most important opportunity we have to help job creators hire more workers, increase paychecks and reinvest in our local communities", Brady said. A Reuters survey of banks that do business directly with the Fed, conducted after the employment report, showed all 18 primary dealers polled expected the us central bank to raise rates this month.
America is poised to gain jobs for the 80th consecutive month.
Government employment decreased 9,000 last month.
The labor-force participation rate - the share of the working-age population working or looking for work - actually fell last month.
Though retailers, government and manufacturers lost jobs last month, restaurants and health care companies posted solid gains - adding up to a combined 56,600.
Construction added 11,000 jobs in May, with 7,200 of them in heavy and civl engineering, and 5,500 in building construction.
Annual growth in average hourly earnings was a so-so 2.6 percent in April. The average monthly job growth is 22,000 so far this year, compared to the 32,000 new jobs per month that BLS reported in 2016. If that trend continued in May, a falling U-6 would point to a strengthening economy despite weak growth during the first three months of the year.
U.S. jobs growth slowed sharply last month, according to closely watched official data, dealing a blow to Donald Trump. And indeed, with unemployment at a near-historic low, wages are bound to rise.
While the topline unemployment number did fall and we also saw another drop in the broader U-6 unemployment rate, both of those drops seem to be attributable more to the fact that people were withdrawing from the labor force, likely a sign that the jobs market is fairly sparse out there right now. Long-dated U.S. Treasury yields fell to almost seven-month lows, and short-dated yields touched their lowest in more than two weeks.
"We would be surprised if wages were still running under 3 percent, for example, when we get to the end of 2018", said Chris Rupkey, managing director at MUFG Union Bank.