More jobs leads to lower unemployment in the United States
The American economy is experiencing strong growth in the number of new jobs, according to the US Ministry of Labour. A total of 209,000 jobs were created in July.
Especially in the health, care and restaurants sectors it has become easier to get jobs. The figures were well above what the analysts had expected.
The United States is experiencing solid growth for the second month in a row, indicating that the US economy is on the rise.
Unemployment fell slightly to 4.3 per cent.
Wage growth not following the pace
However, wage growth is not faring as well. The hourly salary increased on average by 2.5 per cent compared to the same month last year. The figure is the same as for June. It is well below 3.5 to 4 percent, which is common when the unemployment rate is this low.
The extent of fresh jobs suggests a healthy economy, despite some mixed signals in recent weeks. Equally, employers are optimistic and believe in increased demand for goods and services.
A large increase in jobs also create expectations of consumption growth and increased spending. Americans buy homes at a healthy pace sales of cars is however dropping.
© NTB Scanpix / Norway Today