Good news for people looking for jobs
The unemployment continues to fall, reaching 3.8% in May. This is the lowest percentage since April 2000. Businesses continue to employ more workers, with job openings posting at record-highs.
In fact, the year-over-year difference in job creation has even improved in 2018. This year, the US economy has added an average of 207,000 jobs monthly, compared to 182,000 in 2017. Plus, businesses have added more jobs monthly for almost eight years, which sets a new record.
Additionally, unemployment among black citizens reached an all-time low in May. It is now 5.9%, the lowest in history (down from 7.6% only a year ago). The gap between white and black workers is now just 2.4 percentage points; this is also a record low.
Plus, wage rates are improving as well; indeed, wages have risen 2.7% in the past twelve months. This figure is only expected to increase as competition for employees rises. And although economists believe that wages should increase by more than the current rate, this is still a promising number.
Further, economists believe that employers are paying less for younger workers that have just joined the job market; consequently, this drives the average wage rate down. Also, employees have less bargaining power than in the past, and aside from a few industries, unions have a much less significant role.
Nonetheless, these figures are exciting for the economy and US citizens. If this trend continues, unemployment will be lower than ever, which will eventually lead to a thriving economy.
Featured image via Pixabay/12019
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