The construction, transportation and health-care industries recorded some of the strongest hiring numbers in September, as the US unemployment rate fell to its lowest level in 49 years. President Donald Trump has imposed tariffs on imported steel and aluminum as well as on roughly half of China's imports to the United Sates.
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. Pointing to the economy's health, the Fed last week raised its benchmark short-term rate and predicted that it would continue to tighten credit into 2020 to manage growth and inflation. And women were much less likely to work. The most direct evidence of the hurricane's impact showed up in the elevated number of workers who reported reduced hours due to bad weather - this metric was over six times larger than what is normal for September.
Here's why: The government counts people as unemployed only if they're actively looking for a job.
Numerous dislocated people will probably return to work.
Jobs in professional and business services rose by 54,000 in September and has increased by 560,000 over the year. And the rising presence of prime-age people in the job market has been offset by the steady retirements of older members of the vast baby boom generation.
"Financial and jobs numbers are fantastic".
While better prospects for employment are helping to draw in people from the sidelines of the job market, boosting the participation rate, economists anticipate that retiring workers will put downward pressure on participation over coming years. However, there was an increase in the number of people working part-time who want full-time work.
With September's increase below the 0.5 percent gain notched during the same period last year, that would lower the annual increase in wages to 2.8 percent from 2.9 percent in August, which was the biggest rise in more than nine years.
But the U.S. unemployment rate fell to near a 49-year low of 3.7%, pointing to a further tightening in labour market conditions. Online retail giant Amazon announced this week that it would raise its minimum wage to $15 per hour for USA employees starting in November. Retailers have begun scrambling to hire enough workers for what's expected to be a robust holiday shopping season. That's the result of higher hourly wages and hours worked. Consumer prices, for example, rose 2.7 percent in August from 12 months earlier.
The Labor Department said it was possible that Hurricane Florence, which lashed South and North Carolina in mid-September, could have affected employment in some industries. In particular, hiring might have been constrained in construction and restaurants because the storm likely closed construction work sites and restaurants.