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