After periods of unrests for the American worker, it seems good times are here. U.S. unemployment rate has been on the drop for the past few years, but the wages haven’t been attractive to many professionals.
However, there seems to be a sudden change in this trend as healthy hiring and better wages have come in as from last month. What this means is that companies are being forced to pay decently so as to retain their best talents thanks to the fact that jobs are tightening.
U.S. unemployment rate falls to a record low of 4.9%
In the last eight years, it is the first time that the U.S. Labor Department has reported an unemployment rate of below 5%. In addition, the report revealed that employees have enjoyed the last six months like never before thanks to the fact that they’ve realized increased hourly rates.
While the Chinese economy is experiencing a slowdown and emerging markets becoming an even bigger risk, the trend in the U.S. shows that the economy is holding up pretty much well.
In 2009, about 10% Americans were jobless. Now that the rate has fallen to 4.9%, the country’s President, Barack Obama, says that this is a sign of progress. Last month was still a poor performer when compared to December when it comes to the number of people employers took in for jobs. Only 151,000 were employed last month as opposed to December’s 262,000.
January saw a surge in jobs offerings in the manufacturing industry to 29,000, something that was contrary to the same category’s performance in the second half of last year. There is no doubt that factory employment rates have been affected by the strong dollar as well as poor export markets in Europe and Asia, particularly China. While many expected worst to come, the rising wages have led to some experts suggesting that the worst might just have come to an end.
There was even better news coming from the construction industry as it added about 18,000 workers to its database, but the oil and gas drilling industry was busy laying off workers. In general, the mining industry has laid off up to 146,000 workers since September 2014. Despite this, the country’s top economists still think there is little to worry about as far as unemployment and economic growth are concerned.
“We do think that the unemployment rate will continue drifting lower and [in the long run] that will support growth in wages,” Michael Gapen, who is the chief U.S. economist at Barclays, said. According to Gapen, the country’s economy is not “sliding into a recession.”