Thomas Gallatin: Unemployment Hits Half-Century Low

Worker in California

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With the economy continuing its steady upward trajectory, a milestone was reached that has not been seen since 1969 - the headline unemployment rate fell to 3.6%.

Professional and business services, which include IT networking jobs as well as accountants and engineers, led the gains with 76,000. At the same time, the strength endorses Fed Chairman Jerome Powell's resistance to White House and Wall Street calls for interest-rate reductions.

According to the report, the number of job losers and persons who completed temporary jobs declined by 186,000 over the month to 2.7 million.

"The April jobs report provided further confirmation that the pace of hiring is recovering from its February swoon".

Many businesses say they're struggling to find workers, yet each month they seem to add a substantial number.

The retail sector lost 12,000 jobs in April. Average hourly earnings are forecast to have risen 0.3 percent in April after edging up 0.1 percent in March. He adds that "it's our expectation that the Fed is willing to let the economy run "hot" - and stay on the sidelines - until inflation becomes a much greater concern".

US job growth surged in April and the unemployment rate dropped to the lowest in almost half a century, pointing to sustained strength in economic activity even as last year's massive stimulus from Republican tax cuts and spending increases fades.

FILE PHOTO: A job seeker (L) talks with a corporate recruiter (R) as he peruses the man's resume at a Hire Our Heroes job fair targeting unemployed military veterans and sponsored by the Cable Show, a cable television industry trade show in Washington, June 11, 2013. The Fed study is the latest proof the jobs market continues to sizzle.

The unemployment rate has held steady between 4 percent and 3.7 percent for more than a year before the April jobs report showed it drop to 3.6 percent.

That was well above the result economists expected, and worker pay continued to climb, although at a slower pace, according to the closely-watched report from the Labor Department.

Workers pour cement at a construction site for an office town in downtown San Diego, California, US, April 23, 2019.

Government hiring also was the strongest in eight months, with 27,000 jobs created. Over 2 million jobs were created past year, including 250,000 jobs in new construction projects, and 250,000 jobs in mining and manufacturing.

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