US unemployment falls to 3.7 percent _ lowest since 1969

07 October, 2018, 09:49 | Author: Brooke Harris
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WASHINGTON, Oct 5 (Reuters) - The U.S. economy likely created jobs at a brisk clip in September, with the unemployment rate probably falling to an 18-year low of 3.8 percent, signaling a further tightening in labor market conditions.

Many economists have forecast that Hurricane Florence, which flooded parts of North and SC last month, depressed September's job growth by roughly 30,000.

Hurricane Florence, which battered the US East Coast in mid-September, was cited by the Labor Department as a factor for some employment changes, specifically leisure and hospitality, which lost 18,000 jobs in the period.

Average hourly pay rose 2.8 percent from a year earlier, a moderate gain and one tick below the year-over-year increase in August.

"For years now we have continued to cross fingers and say more substantial wage growth soon", said Mark Hamrick, Bankrate.com senior economic analyst. Over time, higher borrowing costs make auto loans, mortgages and corporate debt more expensive and can eventually slow the economy. Bond yields spiked following the jobs report, with the benchmark 10-Year Treasury hitting 3.24 percent - its highest level in more than seven years.

"Just out: 3.7 per cent Unemployment is the lowest number since 1969", he tweeted.

Brett Kavanaugh's Supreme Court confirmation leaves everyone bruised
Ford's testimony to be heart-wrenching, painful, compelling, and I believe that she believes what she testified to", Collins said. Murkowski ultimately withdrew herself from the final tally as a gesture of goodwill toward her Republican colleague, Sen.

Gold prices were modestly higher ahead of the report and have managed to hold on to gains as the market sees little movement in initial reaction.

The historically low US unemployment rate fell again during the month of September, but about 50,000 fewer jobs were added to the economy than experts predicted. The U.S. central bank raised interest rates last week for the third time this year and removed the reference in its post-meeting statement to monetary policy remaining "accommodative". That trend suggests that a brighter economic outlook hasn't caused consumers to recklessly build up unsustainable debt.

The unemployment rate for September dropped two-tenths of a point from August to 3.7 percent, according to the Bureau of Labor Statistics. Retailers have begun scrambling to hire enough workers for what's expected to be a robust holiday shopping season. September's anticipated job gains would match the monthly average for the past three months.

Barrera said she has also seen data that show more people are going straight from not being in the labor force to being employed, bypassing the "unemployed" status altogether. Sales of existing homes have fallen over the past year. Auto sales have also slumped.

Jake Robbins, from Premier Asset Management, said low unemployment was driving wages higher.

Nonfarm payrolls likely increased by 185,000 jobs last month after surging 201,000 in August, according to a Reuters survey of economists. The drop in the jobless rate reinforced expectations for a fourth interest-rate hike by the Federal Reserve this year and several more in 2019 as President Donald Trump's tax cuts boost jobs, even as worker pay remains relatively tepid and the trade war with China poses risks.

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