Unemployment Drops to Lowest Rate in 16 Years

Posted August 05, 2017

Revised total nonfarm payroll employment for May was down from 152,000 to 145,000, and the change for June was revised up from 222,000 to 231,000. In July, average hourly earnings for all employees rose by 9 cents to $26.36, and by 65 cents for the year, a 2.5 percent increase: not very strong, but just enough to seem like a relative improvement. This was, however, a significant slowdown from the increase of over 45,000 the previous month. Wage gains have remained in the range of 2.5 percent to 2.8 percent this year.

"It was strong across the board". The next rate hike isn't seen until December.

Canadian employment increased 10,900 for July which was close to expectations of around 10,000 for the month.

On the campaign trail, Trump highlighted the millions on the sidelines of the labor market as a "silent nation of jobless Americans" and promised lower tax rates and deregulation that would "massively" increase jobs and wages. The central bank will hold its next policy meeting on September 19-20.

"The distribution of wage growth also sheds some light on the unemployment-wages puzzle: even though low unemployment hasn't boosted aggregate wage gains, the people whose unemployment has fallen more have indeed seen bigger recent wage gains".

Several economists say the plan would put US economic growth at risk if it meant there would be fewer workers in America. The dollar rose sharply against a basket of currencies.

Prior to the release of the report, economists polled by Reuters forecast a tally of 183,000 additional jobs to public and private, non-farm payrolls.

The economy extended its winning streak in July, posting its eighth consecutive month of job growth while the unemployment rate dropped to its lowest point since the start of the financial crisis almost nine years ago.

The unemployment rate dipped from 4.4% in June to 4.3%, and the US economy added 209,000 jobs in the month, well above expectations for around 180,000 new jobs.

Most of Bay Street and Wall Street think the Bank of Canada has already chose to raise interest rates again this year. Particularly in lower-skilled jobs, behavioral traits and social skills, such as showing up to work on time or having years of experience interacting with customers, become more important.

Now let's think about the trajectory of the labor market.

There were 400 fewer people working in Saskatchewan last month as 27-hundred full-time jobs were lost. This is well above the average of 4.4 percent (those with a college - or more - education are at 2.4 percent), but down from 7.5 percent a year ago. The average monthly job gain over the past three months is 195,000. Mining collapsed under the Obama Administration, but has surged since the election of President Donald Trump.

The president promised this morning that he will continue to roll back "stifling regulations" that hurt jobs. Movement back to USA! Manufacturing firms hired 16,000 workers.