Jobs Added in April, Unemployment Down to 3.9%

Randal Sanchez
May 6, 2018

Economists technically define full employment as any time a country has a jobless rate equal or below what is known as the "non-accelerating inflation rate of unemployment", which goes by the soporific acronym NAIRU.

The U.S. unemployment rate has dropped two-tenths of a point to 3.9%. Historically, employment has dropped below 4 percent just before a slowdown or crash, as the Washington Post reported.

The US economy added jobs at a moderate pace last month, continuing a record nine-year streak of month-on-month job gains. Baby boomers, which today represent a third of the workforce, are retiring in droves, said Joe Brusuelas, chief economist at RSM, an worldwide consulting firm. Only the 1990s expansion was longer.

Barrera adds that it is also younger people who are new to the workforce that are seeing more opportunities as well. That was during the middle of World War II, when millions of men were drafted to fight and their jobs were filled by women.

A broader measure of unemployment, which includes people who want to work but have given up searching and those working part-time because they can not find full-time employment, dropped to 7.8 percent last month, the lowest level since July 2001, from 8.0 percent in March.

Gould said that the unemployment rate can fall for the right reasons - more people are working - or because of other structural factors, like a drop in labor force participation. The narrow spread between long-term and short-term interest rates may reflect concerns that the Fed will hike rates too much in the near term as the economy gets a boost from tax-cut and spending stimulus, leading to an economic letdown. At the other end of the scale, the unemployment rate among Asian Americans was 2.8% last month. The last time it was lower than that was 1969.

Netanyahu Ramps Up His Anti-Iran Fearmongering
If the USA abandoned the deal, Iran would be free to evict the inspectors and resume the very activities that Netanyahu decried. The Iranian defense chief also said the United States' "behavior toward the nuclear deal is risky for the global system".

Wages grew 2.6 percent year-over-year.

In April, only 3.9 percent of Americans who were looking for work couldn't find it, according to the jobs report released by the Labor Department Friday. "Our takeaway from the report is that recent economic conditions support a gradual pace of monetary tightening". That was also slightly below expectations.

In April, employment in mining increased by 8,000, with most of the gain occurring in support activities for mining (+7,000). The April gain is the 91st consecutive month of job growth.

"We are in a period of intense demand for executive talent", said Robert Nephew, founder and managing partner of search firm RM Nephew and Associates, which specializes in the technology, professional services and healthcare sectors.

President Trump celebrated the report. Since President Trump's election, almost 3.2 million American jobs have been created.

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