Unemployment Rate in US Down

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Monthly payroll gains of around 100,000 or even as low as 80,000 are seen as sufficient to push down the unemployment rate over time.

Unemployment has fallen this year to its lowest level since 2000, and many economists predict unemployment will fall even further this year.

The Labor Department released its report Friday, showing US employers added 157,000 jobs in July.

The US Department of Labor also said the unemployment rate fell from 4.0 per cent to 3.9 per cent in July, near to the 18-year low it reached in May. "Those revisions give us 59,000 jobs added that we didn't know we had before". The idea that the labor market is becoming increasingly tilted to favor more educated workers does not appear to be supported by the employment data.

Last month, Trump also saw a 4.1 percent GDP rate, the highest since 2014.

Average hourly wages for all employees on private nonfarm payrolls rose in July by $0.07 to $27.05; average hourly earnings climbed 2.7 percent relative to July 2017, and economists expect labour costs to keep rising. That's below the 215,000 average for the first seven months this year, but economists said the slip will likely prove temporary.

Gapen said he's optimistic that wage gains will pick up, ending the year at about a 3 percent increase.

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The government upwardly revised June jobs additions to 248,000 from the prior 213,000. The gauge includes part-time workers who'd prefer a full-time position and people who want a job but aren't actively looking.

Companies say they are struggling to find workers, with job openings higher than the number of unemployed for the first time in decades.

One weak spot for economy, however, is the housing market.

Although the labor force participation rate was unchanged at 62.9%, it increased for the prime working-age cohort (25-54 years).

Hiring in the goods-producing sector rose by 52,000, in line with its strong recent trend, while job growth in the service-providing sector moderated to 118,000 from outsized 182,000 and 204,000 gains in June and May, respectively.

The Federal Reserve's Beige Book report last month showed a scarcity of labour across a wide range of occupations, including highly skilled engineers, specialised construction and manufacturing workers, information technology professionals and truck drivers. That's the fewest in 11 years.

Among the unemployed, the number of people looking for work after losing or quitting their jobs fell by almost 290,000 to 1.8 million.

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