Economy

Unemployment rate falls to 3.7 percent, lowest since 1969

Unemployment rate falls to 3.7 percent, lowest since 1969

And a new Trump administration tariff on $200 billion in Chinese imports - along with China's retaliation against U.S. imports - took effect last month, hitting many consumer goods.

In the past 12 months, the USA economy added over 2.5 million jobs.

What's more, the government on Friday revised sharply up its estimate of hiring for July and August by 87,000 jobs.

Still, should the tariffs remain fully in effect a year from now, roughly 300,000 jobs could be lost by then, according to estimates by Mark Zandi, chief economist at Moody's Analytics.

The economy added 134,00 jobs last month, well below what economists predicted, largely because of a decline in the leisure sector, which was hit hard by Hurricane Florence. "There is little in this report to stop the Fed continuing to raise interest rates gradually".

In line with Black unemployment was the overall unemployment rate, which fell from 3.9 percent to 3.7 percent, lowest since December 1969, the department said.

But he said the very low unemployment rate also reflected an increase in the number not looking for work, who were not classified as unemployed.

The report reinforced the view of Federal Reserve policymakers, who cited a strong job market when they announced they were increasing a benchmark interest rate - the third hike in a year.

Hurricane Florence, the storm that made landfall along the mid-Atlantic US coast on September 14, caused widespread disruption for homes and employers but it was not possible to determine the extent to which this might have depressed the September jobs numbers, officials said. It said it was impossible to quantify the net effect on employment. The average workweek was unchanged at 34.5 hours in September. The Federal Open Market Committee will raise the federal funds rate at their meeting in mid-December in an attempt to make sure that an overheating job market does not lead to inflation consistently above the FOMC's 2 percent objective.

Washington last month slapped tariffs on $200 billion worth of Chinese goods, with Beijing retaliating with duties on $60bn worth of United States products.

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The last time the American job market was this strong, astronauts were still going to the moon.

An Institute for Supply Management (ISM) survey of manufacturers published Tuesday showed factory activity retreated from a 14-year high in September. The September gain extended an 8½-year streak of monthly job growth.

The dollar and Treasury yields fluctuated after the report, with the 10-year rate briefly touching a fresh seven-year high. While that's still lower than what economists would expect with a rock-bottom unemployment rate, it's an improvement from the 2.0 percent growth seen at the start of this year.

Average hourly earnings increased 0.3 per cent in September after a similar rise in August.

While unemployment remains low, wages grew 2.8 percent in September, a slight disappointment after 2.9 percent growth in August, which was the highest in nine years.

Since Donald J. Trump was elected in November 2016, the US economy has created 4.2 million jobs.

For now, consumers, business executives and most economists remain optimistic. In August, that sector saw an increase of 21,000 jobs.

Despite newly-imposed tariffs on steel and aluminum, manufacturing added another 18,000 jobs.

USA construction companies hired 23,000 more workers last month after increasing payrolls by 26,000 jobs in August. Job gains occurred in professional and business services, in health care, and in transportation and warehousing.