USA unemployment rate fell to 3.7 percent in September after standing at 3.9 percent for two months, hitting the lowest level since December 1969, the Labor Department reported on Friday.
The Labor Department said non-farm payroll employment climbed by 134,000 jobs in September, while economists had expected an increase of about 185,000 jobs. After upward revisions to previous months' numbers, job gains have averaged 190,000 per month over the past three months, more than enough to keep unemployment on a downward trend.
The decline in the unemployment rate to a near 50-year low reflects the Household Survey's measured 270,000 decline in unemployment coupled with the 150,000 increase in the labor force. Over the year, the unemployment rate and the number of unemployed per.
Average hourly earnings rose 0.3 percent from the prior month, matching estimates, following a downwardly revised 0.3 percent gain. The jobless rate's decline to a 48-year low will put that view to the test. It also stands that wage growth has not increased and wage inequality has not narrowed, a further sign that numerous newly crated jobs fall within less secure sectors of the economy.
"I would view this as a full-employment jobs report", Alan Krueger, a Princeton University economics professor and former head of the White House Council of Economic Advisers under Barack Obama, said on Bloomberg Television.
The modest job gains came after private payrolls firm ADP said hiring surged 230,000 in the month, but the two reports often diverge since they calculate employment differently.
The Bureau of Labor Statistics reported today that the number of unemployed workers in the oil and gas extraction industry from September 2017 to September 2018 has decreased from 24,000 to 13,000 unemployed. Bond prices fall when yields rise. As business demand for workers continues to rise, attractive wages and benefits are luring a growing number of persons from the sidelines back into the workforce (See "Rising US prime working-age labor participation").
As usual, the focus will be on wages - but even more so this time.
As a result, the Fed is all but guaranteed to stick to its plan of raising rates four times before the end of next year, he added.