Over 156,000 job positions were created in September, according to the Labor Department. This is enough to accommodate new entrants to the labor force and entice back worlds who dropped out after the Great Recession. The unemployment has rose slightly from 4.9 percent to 5 percent; however, this is generally because more people are now included in the labor force. Still, the number of jobs are continuing to rise with no evidence of it ending suddenly. The average earning increased by 0.2 percent, for a 12 month total of 2.6 percent. Yet, the typical workweek grew a little as well.
Though all numbers are looking good, they did not reach the numbers expected, therefore the Federal Reserve is expected to delay raising interest rates until the end of the year. This gives policy makers time to consider the October and November job reports, and whether to tighten monetary policy. After falling for 23 consecutive months, with 223,000 jobs cut during that time, employment in the oil sector was finally flat last month. Overall, it will be interesting to see if the gain in payrolls have slowed down the pace of recruiting, or not.
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It's great that new jobs are being created even with the slight increase of the unemployment rate. However, I'm curious to see how the unemployment rate will be affected as even more Baby Boomers retire and more jobs are potentially cut.
ReplyDeleteThe increase in jobs are good and hopefully it helps decrease the unemployment rate. It would be a real problem if the unemployment rate continues to increase even with more jobs added.
ReplyDeleteSlow, but steady, growth is good to see for the economy. As seen in the last two debates (presidential and vice-presidential) the Republican nominees have not mentioned anything about the state of our economy because it has been doing well under democratic administration.
ReplyDeleteThe recent price shock to oil caused many job cuts in the oil sector. Since the number of jobs dropped for 23 consecutive months, a flat line could indicate the job market as adjusted to the current price of oil.
ReplyDeleteIt is good news that new jobs are being created and this is helping the economy to grow. But since the Fed has being expecting a bigger growth in the economy, in this case for example they where expecting more jobs to be created, it would be interesting to know what they are trying to do to make this expectations happen so the economy grows as expected. Also it is interesting to know what is going to happen with the interest rates, because since the Fed is not seen as much growth in the economy, it is interesting to know if they are going to increase it or not this year, and also by how much would they increase the rates.
ReplyDeleteIt is interesting to see that the United States has added 156,000 jobs last month, despite the recent statistics show that the unemployment rate increased from 4.9% to 5%. Positive signs show since average hourly earnings rose by 0.2% last month and the labor force participation rate rose to 62.9% . The interesting thing to note regarding the increase in unemployment rate might be due to the increase in the labor force, despite numerous new jobs are being added. It will be interesting to see how the numerous policies, like change in interest rates by FED, the inflation rate, etc will ensure that unemployment rate will drop to its target of 4% by 2017. "There are plenty of unemployed people out there" and "the expansion will end before you run out of labor" are positive prospects towards a healthy economy where employment and labor force participation rates are high.
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