mutikani by lucia
washington (reuters) – the u.s. economy is destroying jobs in the month of september, for the first time in seven years, due to the disruptions caused by hurricane harvey, and irma, but the unemployment rate has declined and wage growth has accelerated, in line with the scenario of a recovery of interest rates by the federal reserve in december.
last month, and non-agricultural jobs have been destroyed, especially in tourism and hotel industry, announced friday the department of labour.
this is the first decline in non farm employment in the united states since september 2010.
the labour department said that the hurricane harvey, and irma, which devastated the texas and florida in late august and early september, reduced the estimate of total non farm employment for the month of september.
economists polled by reuters had expected, the creation of new jobs last month. the government has increased the number of jobs created in august 169.000 against 156.000 first estimate.
the change in employment from one month to the next is estimated by a survey of firms in which employees were not paid for a period of up to 12 months are considered to be unemployed.
a lot of people displaced as a result of hurricane harvey, and irma would return to work. the clean-up and reconstruction should also contribute to an increase in employment in the months to come.
the sectors of tourism, recreation and hospitality have destroyed 111000 jobs last month, the number of posts, the highest since the source of statistics on employment in 1939. employment in these industries was unchanged in august. it has also declined in distribution and industry, in the last month.
despite the destruction of jobs, the unemployment rate fell two tenths of a percentage point from the previous month to 4.2%, the lowest level since february 2001.
the average hourly wage increased by 0.5% in september, after an increase of 0.2% in august. over the course of a year, its growth is 2.9%, the highest since december 2016, from 2.7% in august.
economists believe that an increase of 3 per cent annual rate of average hourly earnings was needed to meet the inflation target of the fed).
the decline in the unemployment rate and the acceleration of wage growth showed that the scenario of increased interest rates by the federal reserve during the month of december, and contributed to the rise in the dollar and market rate, the performance of the treasuries in 10 years, reaching a peak of about three months.
america’s central bank said last month that it was expected that labour market conditions improved slightly. the fed, which has already raised rates twice since the beginning of the year, was left unchanged in september, but suggested that a further increase could take place by the end of the year.
speaking on the cnbc after the publication of the numbers in employment, the dallas fed chairman, robert kaplan, said he was open to an increase in the month of december, in an environment, through a tightening of labour market conditions.
he said that the objective of federal funds, the federal reserve increases up to about 2.5% at the end of the cycle of recovery rates.
process for the extended service, edited by wilfrid exbrayat)
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Translated by forexguides.info Team