The US unemployment rate has reached a point close to its lowest in half a century.
There is still modest growth in job opportunities, giving hope that the economy will keep going strong and steer clear of a recession for the time being.
The latest monthly employment report from the Labor Department brought some positive news on Friday. Despite a slowdown and trade tensions affecting manufacturing output, the US economy remains resilient. It seems that a recession is not imminent.
However, recent economic indicators suggest a possible shift in the nation’s longest economic expansion toward a downturn. Wage increases are stagnant, and manufacturing jobs have decreased for the first time in six months. While unemployment remains low and job creation is decent, the retail and utilities sectors are shedding positions. Manufacturing output hit a ten-year low in September, and growth in the services sector is slowing.
On a positive note, the 3.7% unemployment rate that persisted for three consecutive months was reduced as 117,000 individuals joined the workforce in September. Although September’s job growth was below this year’s monthly average of 161,000, it did surpass the 100,000 threshold needed to accommodate the growing working-age population.