Published: Sun, August 05, 2018
Markets | By Otis Pena

Unemployment Rate for Workers Without High School Degrees Hits Record Low

Unemployment Rate for Workers Without High School Degrees Hits Record Low

The sector added 16,700 jobs in July, down 34% from the 25,200 new jobs in June and well below the almost 29,000 the sector added in May, according to the U.S. Bureau of Labor Statistics' newest jobs report released Friday.

"Job gains have been strong, on average, in recent months, and the unemployment rate has stayed low", the Fed said.

Jobs and recruiting site Glassdoor tracks wages across the USA in its Local Pay Reports.

Job gains have averaged 215,000 so far this year, an acceleration from 2017 (182,000) and 2016 (195,000) averages.

Like weather forecasters predicting sunny skies in Southern California, economists have watched the labor market produce consistent monthly increases in hiring recently.

Following this latest solid jobs report, it remains likely that the US Federal Reserve will hike interest rates two more times in 2018.

The jobless rate had risen in June from an 18-year low of 3.8 percent in May.

Among the unemployed, the number of people looking for work after losing or quitting their jobs fell by almost 290,000 to 1.8 million. Year-on-year growth was unchanged at 2.7%. "There is such a thing as slack in labor markets being removed and scarcity puts upward pressure on prices somewhere", he said.

Voluntary job quits remained very elevated, reflecting strong household labor market confidence.

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Wage growth increased but remained sluggish.

Construction boosted jobs by 19,000 following a 13,000 gain. Other sectors are seeing wages stagnate or even fall.

Despite many businesses' trouble finding qualified workers, they are still hiring and looking outside traditional pools for talent.

The drop in government payrolls was concentrated in local governments, which shed 20,000 jobs.

"Job gains occurred in professional and business services, in manufacturing, and in health care and social assistance" the report says.

Manufacturing added 37,000 jobs in July, with most of the gains in durable goods, according to the report.

Economists had forecast that the number of jobs created would be nearly 190,000 for the month.

Non-farm payrolls advanced 157,000 after an upwardly revised 248,000 increase, Labor Department figures showed Friday.

Mickey Levy is the chief economist for the United States, the Americas, and Asia at Berenberg Capital Markets, LLC and a member of E21's Shadow Open Market Committee (SOMC).

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