The percentage of US citizens who were expected to receive government benefits due to being unemployed decreased this year, 15,000 less than expected.
The number of US applications for unemployment benefits rose less than expected.
The number of applicants for unemployment benefits fell to the lowest level in five months last week, indicating that the labor market remains robust despite a decline in job growth.
Initial claims for government unemployment benefits fell by 15,000 to 204,000 in the week ending September 7, on a seasonally adjusted basis, the lowest level since April, according to data. Issued by the Ministry of Labor in its statements during the month, the decline in the number of claims by 15 thousand claims is the largest decline occurred since last May.
Has been corrected the previous week ‘s figures , we find increasing an estimated 2,000 requests have been sent and received, but did not appear in previous recordings, as well as lower average moving within four weeks of initial claims, which is one of the best standards that labor market trends appear due to change, where It changed by 4.250 to reach 212.500 during the past week.
The rate of job cuts continues to decline, although the economy is not currently positive due to the US-China trade war, which is detrimental to trade and investment. However, job growth rates are declining, causing some concern for It is caused by negative consumer spending, which drives the economy mainly.
In August, non-farm payrolls increased by 130,000, down from July to 159,000.
The month-on-month growth rate was 158,000, and despite the low job growth rate, it is still higher than necessary to keep pace with the growth in the working-age population estimated at 100,000 jobs a month.
High consumer index
Economists had expected core CPI to rise 0.2% in August and 2.3% this year.
The Labor Ministry said the CPI rose 0.3 percent, excluding food and energy components, over the past three months. The so-called Core Consumer Price Index (CPI) was bolstered by an increase in health care costs, increases in the prices of used cars and trucks, airline tickets and entertainment.
The Core Consumer Price Index (CPI) rose 2.4% in the past 12 months to August. The core CPI reached its highest level since July 2018, after rising 2.2% in July.
Reduce high CPI due to lower energy prices
However, due to lower energy prices, this led to a hindrance in the increase in the total CPI to 0.1% last month, while the CPI rose by 0.3% in June, and in the previous 12 months to August, the CPI rose The index rose 1.7% after rising 1.8% in July.
Due to the importance of the PMI core monetary policy, the Fed is constantly tracking it, as the Federal Reserve has a target of 2% inflation. Last July, the rise did not meet the Federal Reserve’s target as it was below its target this year.
Economists predict that inflation may accelerate in the next few months and reach its target or exceed in 2020 after the expansion of tariffs this month in the United States imposed on Chinese goods include a range of consumer goods, however the Fed is expected to continue in Interest rate cuts this year to support the economy hit by the more than a year-long trade war between the United States and China, which has led to a decline in global manufacturing levels and strained business confidence, which could lead to an economic recession. For now, this tension threatens the longest economic expansion in US history.
Federal Reserve Chairman Jerome Powell said he did not expect an economic recession or not, as the central bank would continue to act “as needed” to maintain the ongoing economic expansion for the past 11 years.
The Fed cut interest rates this month at its mid-month meeting as economists had expected, and the Fed cut rates in July for the first time since 2008.
Gasoline prices fell in August by 3.5% from a recovery in July and rose by 2.5%, while food prices remained unchanged for three consecutive months. The volume of food consumed at home fell 0.2%, and health care costs increased by nearly 0.7% in August, the largest increase since August 2016, after rising in July by 0.5%.
The proportion of jobs is rising to a new level
The volume of jobs available in the United States rose sharply in April to a new level, according to government data, indicating a recovery in the world’s largest economy as US President Donald Trump prepares to confront his opponents in Presidential elections next year.
The data showed continued activity in the broad-based services sector as well as the unemployment rate falling to levels not seen since 1969, helping to reduce fears of a slowdown despite the shrinking labor force.
Workers were employed in various sectors such as construction, computer system design, administrative support, healthcare and other service industries, adding more than 263,000 new jobs, according to data released at the beginning of the second quarter.
According to the report issued by the Ministry of Labor, which recognized the continued rise in wages of workers despite the slow pace of this increase, where these results exceeded the expectations of economists.
While the unemployment rate dropped to 3.6%, the reason for this decline was partly due to a contraction in the size of the labor force. Record level among Hispanics.
Shortly after the data was released, US Vice President Mike Pence said the US economy was in “strong shape,” referring to President Trump’s economic agenda that included both easing bureaucratic regulations and tax cuts.
The hourly wage rate jumped by 3.2 percent from April last year, indicating that March was the ninth month in a row that saw growth of more than 3 percent at an annual pace, away from inflation.
The wage increase was 0.2% compared to March, but economists have linked this slight increase due to the effects of the Easter holiday.
It created 27,000 new jobs in the government sector and the level of employment reached its highest level in eight months.
However, the employment rate in the manufacturing sector was low for the third consecutive month, after growing last year.
Since President Donald Trump’s election as US president, more than 3.4 million jobs have been added to the US economy until the first half of this year, Labor Minister Alexander Acosta said in a statement.
The report showed that there were significant increases in the level of wages during the past few months, where the average hourly wage rose eight cents, or 0.3 percent during the last few months, and had recorded a significant increase of close to 1% during the month of April, thus rising The annual increase in average wage in April to 2.7 percent from 2.6 percent.
“The good news for the markets is the constant average hourly wage, which indicates that inflationary pressures have not accumulated,” said Michael Arun, a senior investment analyst at State Street Global Advisors Ltd.
Expansion of earned income tax credit
Earned income tax credit was expanded in 2019 in six of the 29 states, as well as reducing poverty and improving health especially for children, mothers and single women, and income tax credit helps create jobs. It works best if it binds a higher minimum wage, so that employers are unable to charge the cost of paying their workers to taxpayers.
California raised the minimum wage in 2019, although it has the highest poverty rate in the United States, estimated at 19%, with annual increases to 2023. It is also seeking to expand its income tax credit, which is set to expand to include Self-help workers and children without children, additional support of $ 1,000 will be provided to eligible families with children under the age of six. Thanks to this expansion, approximately one million more families will be able to access credit, while some local governments will take measures to In order to help the workers, the geographical differences persist According to new studies conducted by the McKinsey Global Foundation, labor and wage gains in the current expansion have varied significantly between cities, regions and states, indicating a long-term acceleration that began after the 2008-2009 economic recession.
The widening difference between rural and urban areas
In both California and other states and at the national level, employment gains have accrued heavily in urban areas, as well as continued low employment in rural areas and affected cities.
Most industrial and rural areas in the South, Midwest and Southwest have been particularly hard hit. Less than 10% today.
Because of these geographic disparities, there has been increased interest in special policies in local affairs in order to increase the number of jobs in difficult areas. For example, the California region has leaders from different sectors and locations to develop a comprehensive plan to improve state-level labor market conditions, which will build on already locally active initiatives throughout the state, taking advantage of the State – level investments.
The rate of demand for unemployment benefits fell from the expected rate during the current year by 15 thousand applications to reach 204 thousand applications during the first week of this month. Despite the low growth rate of the US economy, the number of jobs available during the year is still higher than the number required for the employment of young people who reach the working age, with an estimated number of jobs available at 158 thousand and the number required to meet the needs of the labor market is 100,000.