The official unemployment rate in the US has fallen to 3.5%, an unprecedented low which has not been seen since 1969, the same year that American astronaut Neil Armstrong was the first man to set foot on the moon! The record lows are visible all across the US with both the Hispanic and African-American communities also recording extreme low levels of unemployment.
As the US economy moves slowly towards full employment, wages across the country have also increased by 2.9% in the last year. Although this is above the current rate of inflation in the US (1.7%), it is still seen by US economists as a sluggish increase, not filling the hearts and minds of US workers with much optimism. The current concern is that the US economy might be drawn into the economic woes of other regions around the world, leading to an increase in inflation and reduced economic growth.
Despite future uncertainty, job creation is surging across the nation and likely to be used as a strong mandate by president Trump going into next year’s presidential elections.
Think like an economist!
- Explain how unemployment rates are measured.
- What is the link between job creation and the presidential election?
- Analyse the impact of wage increases on American workers.
