Black Unemployment More Than Twice As High As White Unemployment

Rob Carnell, an analyst at ING Financial Markets, said: “While this does not guarantee a December rate hike from the Fed at this stage [there is one more labour report before the December 16 meeting], we feel that we would need to see a catastrophically bad November labour report for the Fed to sit on their hands again”.

Overall, taking into account all ethnicities, the USA unemployment rate fell from 5.1 percent to 5 percent due to job gains in construction, professional and business services, health care, retail trade, food services and drinking places.

A rate of five percent unemployment is generally considered by economists to indicate full employment across the board.

But that didn’t happen in the ’90s and it hasn’t happened recently, either. Rebounding after a two-month slowdown, the labor market’s resilience bolsters the case for a hike in interest rates by the Federal Reserve next month.

Equally encouraging is that average hourly earnings rose 9 cents to $25.20 and are now up 2.5% over the past year, the biggest jump since 2009, after sluggish gains of about 2% for most of the recovery.

“This data tips the scales toward a rate hike in December but more importantly is a sign that our economy may have more punch than we thought”, said Tara Sinclair, chief economist for job site Indeed.com.

Unemployment hit a seven year low according to the jobs report released by the Bureau of Labor Statistics Friday.

This video includes images from Getty Images. Still, last month was better than August and September when factories cut 28,000 jobs.

“With America’s jobless rate tumbling to its lowest level since April 2008 – and the economy adding jobs at a truly breathtaking rate – any doubts about its strength can be cast aside argues Lamb”.

Nine-year-olds are about to see something they haven’t their entire lives: the Federal Reserve is going to increase interest rates.

Chair Janet Yellen and other leading Fed officials have said that the economy is generally healthy and that the December meeting is a “live possibility” for a rate hike.

“The economy has regained momentum just in time for the holiday shopping season”, said Bob Hughes, senior research fellow at the American Institute for Economic Research in Great Barrington, Massachusetts.

The employment report joined October’s strong services sector and auto sales data in supporting views that economic growth will regain momentum in the fourth quarter after braking sharply to a 1.5 percent annual pace in the July-September period. The strong of job growth implies that there is no reason to keep the fed funds target rate at near-zero level.

“The three-month average is 187,000”, Nariman Behravesh, chief economist at IHS, an economic analysis company. That’s hardly a huge raise, but it’s significantly faster than inflation, which is running at less than 2 percent per year.

The big indexes, on the surface, had a muted reaction to the job numbers, but a look at the individual parts of the market showed investors were actively reshuffling their portfolios.

An excess of slack in the labor force has maintained a surplus of qualified workers, many of whom are working part-time or temporary jobs, which has allowed employers to dip into that pool to fill positions without having to significantly raise wages.