United States: Improvement of the Labor Market Continues

United States: Improvement of the Labor Market Continues

The unemployment rate fell again in October in the United States, although job creation was weaker than expected, with fewer claims than in September, according to data released Friday by the U.S. Department of Labor.

The economy created 214,000 jobs in October, a rate that remains strong even though analysts hoped for 235,000 new jobs. The department also revised upwards by 31,000 job creations previous two months now totaling 256,000 in September and 203,000 in August.

Official employment figures are the result of two separate surveys, one with companies on job creation, the other from households on unemployment.

“Those who are disappointed with the October figures, which appear below expectations, should remember that job creation is above the 200,000 mark for nine months,” said Chris Williamson Markit.

“This means that the economy added 2,285 million jobs including 2,225,000 in the private sector,” he added.

For the first time in six years, the number of unemployed has dropped below 9 million, with 8,995 million jobless.

The rate, which counts people who have jobs and those who are actively seeking employment, which has declined since the crisis for demographic and cyclical mechanically accelerating the decline in unemployment reasons, rose very slightly to 62.8% in October.

Over twelve months, the world economy has created an average of 222,000 jobs per month, said Erica Groshen, commissioner for Bureau of Labour Statistics. There were more new people finding jobs (683,000) as new entrants to the labor market (416,000) which helped to bring down the unemployment rate, said Paul Ashworth of Capital Economics.

The analyst notes that 5.8% unemployment rate is approaching full employment, which the Federal Reserve (Fed) estimates to be between 5.2% and 5.5%.

The long-term unemployed (unemployed for more than six months) remain numerous, representing 32% of unemployed (2.9 million).

The number of people working part time for the lack of better remains almost unchanged at 7,000,000.

Unemployment affects blacks strongly to 10.9% against 4.8% for whites.

Job growth has occurred particularly in the service sector, especially restaurants, retail and health care services. And bars and restaurants added 42,000 new jobs in October against 26,000 per month in average during the past year.

Retail trade made 27 000 new hires and health services with almost as 25,000 new jobs. Employment in the manufacturing sector has also developed (15,000) and in the transport and logistics (13,000) as the building (12,000). The sectors that have reduced their rate of hiring include mining, government and information industry.

The workweek increased by 0.1 hour to 34.6 hours and the average wage scrounged 3 cents to $24.57.

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