The month of April was good for the United States Economy. Reportedly, some 211,000 new jobs were created by U.S. businesses. This information reveals that the economy is on an upward trajectory and has paved the way for the Federal Reserve's impending tax hike.
U.S. unemployment is lowest in a decade
The recent bounce in the job market has the Unemployment Rate currently at a 10-year low. Additionally, the job growth dropped the unemployment rate from 4.5 to 4.4 percent, which is the lowest since 2007. The government is hopeful that more jobs will be added shortly, and this will help unemployment fall even further to the rate that will match the 16-year low.
In April, most of the new jobs created were by white-collar companies. Employment seekers were able to find work with hotels and restaurants as well as in the healthcare industry. U.S. restaurants and hotels together hired 55,000 individuals in the month of April. The companies in the healthcare sector added 37,000 more people to that workforce.
However, while April's job report proves that the economy is growing at a tremendous pace, the month of March had dismal results. March's poor hiring shows that there was only a 0.7 percent job increase in the first quarter. The dismal result was believed to be some early jitters associated with the newly installed Republican administration. But April's boost in hiring proved that sentiments toward President Donald Trump have increased among U.S.
businesses that are ready to help grow the economy.
Federal Government plans to increase interest rates
Reportedly, the boost in hiring has laid the infrastructure for the Federal government to increase the interest rates soon. However, it also wants to ensure that increasing the current interest rate will not backfire and cause the US economy to revert back into inflation.
The labor market is very competitive, so to attract and keep qualified workers, most firms will have to increase their pay rate. And while the hourly pay last month for highly-skilled applicants rose by just 0.3 percent to $26.19 an hour, in the past 12 months, data for hourly wages shows that the pay rate has climbed just about 2.5 percent.
Reportedly, the average wage is below 3 to 4 percent. This information shows that a tremendous boost in hourly pay is needed to attract more people to the U.S. workforce. However, while the United States economy continues to grow at a steady pace, many more jobs are needed to sustain the nation's economic growth.
