USA: 2014 best year in 15 years for job creation
(synthesis)
Washington (awp / afp) – The unemployment rate in the US fell again in December in the United UNite, falling to its lowest level since June 2008 (5.6%) and finding a great year in 2014 in terms of job creation.
According to figures released Friday by the US Department of Work, 2014 is the best in 15 years in terms of new hires.
The economy created 2,952,000 jobs last year against 3,177,000 during the boom of the Internet and technology industries in 1999.
“This strong employment report finds a strong year for the US labor market, which has achieved significant milestones in 2014,” said the president of Economic Advisors the White House, Jason Furman said in a statement noting that the unemployment rate has declined at the fastest pace in three decades.
In December, the economy has created 252’000 jobs, more than analysts had expected the betting on 245,000 new hires. In addition, the numbers of November, which already had reached its highest level in three years, were revised up to 353,000.
On average, the US economy has created 246’000 jobs a month last year against 194’000 in 2013.
This vitality of hiring in December slid the unemployment rate by two tenths of a point to 5.6%. This level approaches the level of full employment as the Federal Reserve (Fed) estimated that between 5.2% and 5.5%.
In one year, the unemployment rate fell 1, 1 percentage point, the number of unemployed fell in December to 8.7 million.
But this new decline is the result of a lower rate of participation in the labor market, which slipped to –a 62.7% lower in 35 ans– against 62.9% the month before.
This trend can be explained by the aging of the workforce and abandoning the job search by discouraged unemployed should still mechanically accelerate the decline in the unemployment rate in 2015, noted analysts.
“The aging of the workforce could help the declining rate unemployment at 5%, and possibly lower, by the end of 2015, “said Sal Guatieri of BMO Capital Markets. But the number of part-time employees for lack of better remains high at 6.8 million
SHADE TABLE. WAGES
The downside of this optimistic report lies in the evolution of wages. Against all odds, the average hourly wage fell 0.2% in December.
The figure in November was also revised down to 0.2%, so we had perceive an increase in raw thrill of remuneration to 0.4%.
In one year, the average hourly wage increased by only 1.7% while inflation according to the CPI index over-year, increased by 1.3%.
“This decline in hourly wages is the disappointing aspect of this report. As the labor market tightens, employers still manage to delay wage increases, “said Joel Naroff, an independent economist.
The Federal Reserve (Fed) has praised the progress in the labor market, in the minutes of the last meeting of the Monetary Committee, however, has shown its willingness to wait before the first increase in interest rates. This is expected by the markets in the spring. The Fed wants to see inflation back at 2% annually but reported no discernible “clear signs of accelerating wage increases.”
Given the drop in energy prices Economists await indeed a rise in inflation through higher wages, some jobs becoming difficult to fill without any increase in pay.
“If the activity continues to improve this rate, the Fed may not be able to wait for wage growth and raise rates in March “, said Paul Dales of Capital Economics.
afp / rp
(AWP / 09.01. 2015 5:56 p.m.)
(AWP / 09.01.2015 5:56 p.m.) ^ ->
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