Jobless rate held at its seven-and-a-half year low of 5%.
Gone are the days when members of the Republican Party were busy all over the media shouting, where are the jobs, Mr. President?
Now that President Obama has delivered, the talk now is the President has nothing to do with the low job rate — it’s damn if you do, and damn if you don’t, ain’t it Mr. President?
Politics aside, the job market has been doing extremely well over the last 5 years or more.
The latest job report has shown that the economy added 211,000 jobs which is more than anticipated for the month.
The data from the Bureau of Labor Statistics also showed the jobless rate held at its seven-and-a-half year low of 5%.
Furthermore, the report has shown that the following industries held strongly, and showed robust job increases — construction, food services, and retail.
The huge turnaround in the job market will now no doubt push the fed to increase the interest rate later this month for the first time in nearly 10 years.
The fed watches the U.S. labor market like a hawk when seeking to implement new monetary policies.
Earlier last week Fed Chair Janet Yellen while testifying before a Congressional committee hinting that the fed was at a place where a December rates increase was inevitable.
Scott Clemons, chief investment strategist at Brown Brothers Harriman in a New York Times report said, “For a long time, I’ve thought the labor market was in pretty good shape, and this just confirms that.”
The report also said after the release, the president of the Federal Reserve Bank of Philadelphia, Patrick T. Harker, added his voice to the chorus of Fed officials who said it was time for the central bank to raise interest rates.
“Raising rates this year will, in my view, serve to reduce monetary policy uncertainty and to keep the economy on track for sustained growth with price stability,” Mr. Harker said at a Fed conference in Philadelphia.
Davy Desmond, Readers Bureau, Fellow
Edited by Jesus Chan
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