Unemployment Rate for College Dropouts Remains at 17-Year Low

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The latest jobs report has been released and is showing strong numbers as predicted. In May, unemployment hit 3.8 per cent, the lowest reading since April 2000.

"While this increased employment is undoubtedly good news, job growth exacerbates the monumental manufacturing workforce shortage", she said.

The U.S. economy added 157,000 jobs in July, below analyst expectations for 190,000 jobs to be added in the month, while the unemployment rate decreased month over month and wage growth met expectations.

The unemployment rate fell to 3.9% from 4% as expected, moving closer to an 18-year low. The White House has slapped tariffs on steel and aluminium and on $34 billion of imports from China, and several companies have hit USA imports with retaliatory duties. Wages were up 2.7 percent for the 12 months ended July 31, the same annual pace as the previous month and an improvement over the sluggish 2 percent wage gains earlier in the recovery. Average hourly earnings rose by 0.3% in July month-on-month, a gain of 0.1 percentage points in line with economists' estimates.

"It is wonderful that at this point in a recovery you are seeing growth that is on average faster than the previous two years", she reportedly said. With revisions, job gains have averaged 224,000 a month over the past three months.

And the underemployment rate - which includes discouraged workers no longer searching for work, as well as involuntary part-time workers - dropped to 7.5 per cent, the lowest in 17 years, from 7.8 per cent. Business and consumers are optimistic, suggesting solid hiring is likely to continue.

Manufacturing payrolls rose by 37,000 jobs last month after increasing by 33,000 in June. "There's no evidence that businesses are changing the way that they're hiring and spending". Mining, wholesale trade, transportation and warehousing, information and financial activities remained mostly flat, the BLS said.

The pace of hiring workers in the United States slipped to its slowest in four months in July, but interest rates remain on track to rise twice more this year because of the underlying strength of the jobs market.

After remaining elevated for years after the Great Recession, the number of part-time workers who would prefer full-time work has fallen almost 13 percent in the past year and now stands at 4.6 million.



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