U.S. Department of Labor released the nonfarm payroll report. This report helps to understand the latest trends when it comes to the unemployment level, salaries, etc. Such reports are important because it makes it easier to identify main achievements as well as problems of the U.S. economy. It is an important fact that the U.S. has the largest economy in the world. For decades, this country continues to be a leader when it comes to the economy. This is not a small task to maintain this position. Thus it is interesting how the U.S. remains as the number one economy around the globe.
The global economy is slowing down, according to the International Monetary Fund. Also, the World Trade Organization is concerned about world trade. In this situation, the recession in the U.S. will further complicate the situation. The trade war between the U.S. and China is another negative factor. The U.S and Chinese representatives will meet next week. The outcome of the negotiations process will affect not only the U.S. and China but the global economy in general.
Unfortunately, this is not the only problem for the U.S. economy. Another pressing issue is the trade dispute with the European Union. On Wednesday, the World Trade Organization permitted to impose tariffs on European goods. In two weeks, the U.S. will impose tariffs on various European products. However, next year EU most likely will impose tariffs on U.S. products as WTO also found the U.S. guilty of illegal tax breaks.
This dispute will influence the U.S. as well as the EU’s economy. For example, plane maker Airbus operates a factory in the U.S. and this factory requires parts that are imported from the EU. U.S. tariffs may disrupt the production process. As a result, both the U.S. and the EU will lose a lot of money.
Important information about the payrolls report
There are various factors that are shaping the U.S. economy. As mentioned above, there is no shortage of problems that are harmful to the local economy. The nonfarm payroll report for September contains both good and bad news for the U.S. Let’s have a look at the data.
The good news is that the unemployment rate fell to the lowest level in 50 years. Right now the jobless rate lowest since 1969. The rate is 3.5%. It means that in comparison with August jobless rate fell by 0.2%.
Another important information is that the number of people as well as underemployed also decreased in September. At the moment, this level stands at 6.9%, which is at the lowest point in 19 years. Also, this number is very close to the best result in history which is 6.8%.
There is another good news connected with the unemployment among Hispanics. According to the nonfarm payrolls report, this rate is at a record low level. Moreover, the unemployment level among African Americans remained at the lowest level.
The bad news is that the U.S economy added 136,000 jobs in September. It means that it was unable to meet the expectations as analysts expected that the economy would add 145,000 jobs.
There is another bad news which is connected to salaries.
Overall, the employment level remains low. However, there are several issues such as salaries, the number of new jobs, and other problems.