3.8%! The unemployment rate in the US fell to the minimum since 1969

 Breaking News
  • Microsoft, Amazon and eBay are at record highs On Tuesday, securities of Microsoft Corp, Amazon.com Inc and eBay Inc broke records. The rush of investors’ demand for the shares of those companies involved in electronic commerce caused such...
  • Quarantine in Hong Kong is not for everyone Hong Kong is rescuing its stock exchange. In order to give life to the trading platform, the administration of the metropolis has shown flexibility concerning quarantine measures. So, Christopher Hui...
  • Economy of Japan demonstrates recession In the first quarter of this year, the economy of the Land of the Rising Sun dropped by 0.6% in monthly terms. The figures are not optimistic but are better...
  • Energy market news On Saturday, representatives of the countries included in the OPEC+ cartel managed to agree on the extension of the restrictions on oil production. It also became known that those countries...
  • Bentley fires employees in order to prevent losses in 2020 The Bentley brand has long been synonymous with luxury living. Unfortunately, the British automaker has to save because of a forced two-month break. The company’s CEO Adrian Hallmark said to...
3.8%! The unemployment rate in the US fell to the minimum since 1969
June 04
09:00 2018

Last Friday, a report on the state of the labor market in the United States came out. So, the unemployment in the US in May 2018 decreased to 3.8%. We recall that in April, the unemployment rate was 3.9%.

The last time analysts observed such figures in April 2000, and before that – in 1969.

The number of jobs per month (we are talking about non-agricultural and non-budgetary spheres) increased by 223 thousand. This indicator exceeded the expectations of experts who expected the expansion of the labor market by 190 thousand places. By the way, analysts agreed that the unemployment rate would remain at the April level of 3.9%.

Last month, the indicator of the average hourly wage in the US increased by 0.3% (compared to April) and by 2.7% in annual terms. These indicators also proved to be better by 0.1%.than market expectations.

The average duration of the working week did not change, remaining at the level of 34.5 hours per week. Contrary to stereotypes, Americans are not such workaholics.

Some information on specific economic sectors in May:

  • in the manufacturing sector, the number of jobs increased by 18 thousand;
  • retail enterprises expanded the staff by 31 thousand people;
  • the construction sector opened  additional 61 thousand vacancies;
  • the sphere of business services needs additional 25 thousand people;
  • education and healthcare expanded the staff by 29,000 employees;
  • the sphere of financial services grew by 8 thousand vacancies.

Last month, the number of jobs in the private sector of the US increased by 218,000 after increasing by 162,000 in April. The number of civil servants increased by five thousand people.

The Federal Reserve System can use strong labor market statistics as an argument for raising the benchmark interest rate. Analysts agree that the probability of an increase in the interest rate at the next meeting (to be held in mid-June) is 86%.

Traders should expect the strengthening of the national currency and some US assets due to the strong statistics on the US labor market.


The material was prepared with the participation of Katya Gordon,
a leading analyst of the brokerage company CT Trade

Related Articles


No Comments Yet!

There are no comments at the moment, do you want to add one?

Write a comment

Write a Comment