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Let the good times roll again?
212,000 new jobs were announced this month.
All signs are pointing to an economy that is at or near full employment, averaging 160,000+ new jobs per month over the last year. The unemployment rate stands at 4.4%, a 5-year low. The employment-to-population ratio is now back to 1997 levels. Hourly wages are increasing at a 4% per annum rate.
There are still some soft areas. Ohio and Michigan are getting hit hard because of the rollback of the auto industry, f.e.
From the FT...
All signs are pointing to an economy that is at or near full employment, averaging 160,000+ new jobs per month over the last year. The unemployment rate stands at 4.4%, a 5-year low. The employment-to-population ratio is now back to 1997 levels. Hourly wages are increasing at a 4% per annum rate.
There are still some soft areas. Ohio and Michigan are getting hit hard because of the rollback of the auto industry, f.e.
From the FT...
US unemployment falls to five-year low
By Eoin Callan
Published: April 6 2007 14:22 | Last updated: April 6 2007 14:54
The US unemployment rate fell to a five-year low last month as employers created jobs at a steady pace in a sign of continued economic expansion, according to government figures on Friday.
The economy added more jobs than anticipated in March as 180,000 staff were added to the payrolls of non-farm employers, according to the Labor Department. The figures also showed 32,000 more jobs than initially estimated. were created in prior months, with 162,000 staff added to payrolls in January and 113,000 in February.
The steady pace of hiring will ease investor concerns about a sudden slowdown in the economy but add to alarm at the Federal Reserve about inflation pressures.
The central bank views the risks to the economy as finely balanced between a slowdown in growth and stubbornly high price increases.
The fall in the unemployment rate to 4.4 per cent from 4.5 per cent suggests the labour market remains tight and is likely to make the Fed more concerned about the pressure on companies to increase wages and prices.
Investors priced in a lower likelihood that the Fed would cut interest rates, as the yield on the benchmark 10-year US Treasuries rose to 4.73 per cent from 4.68 per cent.
Copyright The Financial Times Limited 2007
By Eoin Callan
Published: April 6 2007 14:22 | Last updated: April 6 2007 14:54
The US unemployment rate fell to a five-year low last month as employers created jobs at a steady pace in a sign of continued economic expansion, according to government figures on Friday.
The economy added more jobs than anticipated in March as 180,000 staff were added to the payrolls of non-farm employers, according to the Labor Department. The figures also showed 32,000 more jobs than initially estimated. were created in prior months, with 162,000 staff added to payrolls in January and 113,000 in February.
The steady pace of hiring will ease investor concerns about a sudden slowdown in the economy but add to alarm at the Federal Reserve about inflation pressures.
The central bank views the risks to the economy as finely balanced between a slowdown in growth and stubbornly high price increases.
The fall in the unemployment rate to 4.4 per cent from 4.5 per cent suggests the labour market remains tight and is likely to make the Fed more concerned about the pressure on companies to increase wages and prices.
Investors priced in a lower likelihood that the Fed would cut interest rates, as the yield on the benchmark 10-year US Treasuries rose to 4.73 per cent from 4.68 per cent.
Copyright The Financial Times Limited 2007
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