Lowest Unemployment Ever in The Last Half Century
Updated : February 22nd, 2022
President Donald Trump broke protocol and tweeted that there was a positive job report with the lowest unemployment. However, the current Federal Rule states that the executive branch employees are required not to comment on major economic reports.
This jobs report is usually kept under wraps till the Labor Department publishes it at 8:30 am. Here investors can misuse this data before it becomes public.
The jobless rate further dropped to 3.8% in May and there was a sign of a strong economy with a tight labor market. The employed percentage of America’s population stands at 60.4% which is still below pre-recession levels.
Josh Wright, Chief Economist at iCIMIS expressed, “This fell for several reasons with more people joining the labor market and several employers digging deeper into the pool of unemployed.” They have got the lowest unemployment rate since 1969 and the only other time it this low was in April 2000.
The increase in jobs paint a picture of the economy that determines the opportunities that almost anyone can get a hold of. Constantly, there is a thin gap between black and white unemployment which has tapered down to its lowest ever Black Unemployment rate.
There are several job openings based on the African- American and Asian-American that has seen a steady decline. This has seen a drop in low-education workers and teenagers. This includes the age category of 16-19 years which has fallen from 14.1% to 12.8%.
America’s population stands at 60.4% which is well below the pre-recession levels. This economy has added 223,000 jobs in May and this has constantly enhanced the economy. This can be found in key sectors like retail, health care and construction. While the economy added 207,000 jobs this month, it improved at a faster pace which is better than the average last year.
Wright expressed that the US economy has this incredible head of steam and this is the second-longest streak over the last nine years. Employers have added jobs every month and these wages have increased by 2.7% which is also higher than the previous year.
Though wage growth has picked up in recent months, economists are puzzled at how long it would take for it for it to climb faster. This job market works with employers that are typically looking to attract workers for a favorable wage. The last time unemployment was this low was in 2000 when it grew at the pace of 4%.
Similarly, there has been a boost in productivity and inflation which has seen its previous periods of growth increase based on the base wage rate. For workers, there has been an erosion of bargaining power that played its role.
The other explanation for this economic phenomenon is based on how the younger people and those reentering the job market would fill positions. Also, this could be based on whether they are better-paid veteran workers, and those that retire or look for new positions at another job site.
While uncertainties have been swept under the rug, there are several economists that express that this will increase competitions and jobs in the process. Several companies look to announce pay hikes and there are several benefits that would look to draw workers to their businesses.
One such business is Costco and this would raise wages for US employees from $1 to a minimum of $14 per hour. Additionally, bond yields have jumped significantly as the dollar inches higher.
While many exclaimed that is would be unwarranted for, this is welcome news for several aspirants that have been constantly looking for opportunities.
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