US job growth has increased sharply leading to a sharp decline in the unemployment rates that was the lowest level recorded in a decade. This data regarding fall in the rate of unemployment was released by the government on May 5.
In the month of April, the economy saw 211,000 jobs that were delivered in April. The unemployment rate was lowered down to 4.4 percent which was the lowest since May 2007. The latest statistics, however, shows some fears regarding the state of the economy, but it will be interesting to note whether the job market remains stable in the coming months also. In the month of April, the average pay was raised to $26.19 showing 2.5 percent rise as compared to last year.
A decrease in unemployment rates reflects a strong financial system with increasing labor that will help to reduce the damage that was caused by a recession. The sectors that have reflected profits in health care are healthcare, hospitality, entertainment, mining and financial activities.
The entertainment and hospitality industry have shown 55,000 jobs that were added in April, the social assistance has added 17,000 jobs, financial activities have reflected 19,000 increase in jobs while 9,000 more jobs were added in the mining sector. The expert and enterprise services have shown a rise in employment by adding 612,000 jobs since last year.
However, other market segments like manufacturing, construction, production, retail exchange, wholesale exchange, transportation, warehousing and government sectors have not shown much job improvements. The unemployment rate indicates the percentage of the population that are actively looking for job opportunities.
This government report has shown a rising economy. Also, the US labor market is growing at a rapid speed even after so much growth in job opportunities. This will definitely overcome the damages and unemployment faced by people during a recession.
Hence, the US economy will see more changes in the unemployment and underemployment ratios. For example, the U-6 rate measure that includes the individuals that are working as part-time employees but searching for a full-time job was dropped to 86 percent in April which was the lowest.
The US economy needs more 75,000 and 100,000 jobs per month that can keep up this growth among working age population.