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The number of new jobs in the United States significantly decreased

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The number of new jobs in the United States significantly decreased
March 12
09:00 2019

In February the American labor market showed rather contradictory statistics. Unemployment fell far below all forecasts when the creation of new job opportunities was almost stopped.  But the salaries of workers at all levels began to grow!

The number of workers employed in non-agricultural sectors has increased by 20 thousand people over the past month. This figure is significantly less than the same in January (311 thousand people). The largest decline in employment has been recorded in the construction sector.

In the first two months of this year, the number of workers in the non-agricultural sectors has increased by 331 thousand. The average rate of the job growth has amounted to 165 thousand vacancies per month, which is 20 thousand less than the average indicator for the last 3 months.

The situation on the US labor market has improved steadily up to the present. This could not continue indefinitely, so as the population approached the full employment, the expected decline occurred.

The growth of salaries replaced the creation of new job opportunities. In February, it was 0.4%, which slightly exceeded the forecast. Previously, an improvement in the labor market did not contribute to the wage growth.

The US Federal Reserve pays great attention to the pay increase. At present the interest rate is kept at the same level, but in the second half of the year it can grow.  William Dudley, President of the Federal Reserve Bank of New York, confirmed this assumption. He said that monetary policy would be tightened; no one should expect a long pause in that process.

The Fed has to hold three meetings, scheduled for March 20, May 1 and June 19. In order to shape the future direction of the monetary policy, it is necessary to assess the situation taking into account the negotiations with China, slowing down the global economy and reducing the number of free personnel in the labor market.

 

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

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