The jobless rate dipped two-tenths of a percentage point to 3.7% in September and touched its lowest level in nearly 50 years. Further, the initial job counts for August and July were revised substantially upward.
The American economy is enjoying historical growth amid escalating trade tensions between the Republican administration and overseas countries, including China. This has added strength to corporate investments and made companies hire more aside from offering attractive pay packages.
Professional and business services led job gains, followed by healthcare, transportation and warehousing, construction, manufacturing and mining. With employability likely to grow in the coming months, picking stocks from these sectors would be prudent.
Joblessness Hits 49-Year Low, Employers on Hiring Spree
Per Friday’s Labor Department report, unemployment rated dipped to 3.7% in September, its lowest level since 1969. So far, the metric has seen a steady fall from the skyrocketed rate of 10% during the Great Recession.
Amid stagnant workforce participation, employers added 134,000 new jobs in September, marking the 96th straight month of employment gain. Job creation had got somewhat tempered due to Hurricane Florence but may soon bounce back with increased rebuilding requirements in the storm hit areas. Notably, job additions for August and July were revised upward by a combined 87,000. Average job addition for the last three months came in at 190,000.
At the forefront of job gains were healthcare, transportation and warehousing, construction, manufacturing, and mining industries, which added 26000, 24000, 23000, 18000 and 6000 jobs, respectively. However, leading the pack was professional and business services with 54000 new jobs.
Wages Remain Upbeat, Economy Retains Strength
U.S. companies are not only hiring more, but also recruiting with higher wages. The annual wage rate climbed 2.8% year over year in September. Especially, professional and business services, transportation and warehousing, construction, manufacturing and mining companies are paying better than other jobs. Average weekly earnings in September for professional and business services, transportation and warehousing, construction, manufacturing, and mining employees came in at $1,180.11, $951.49, $1,174, $1,104.46 and $1,509.57, respectively, higher than $939.78 for the private sector taken together.
