US Hiring Accelerates; Annual Wage Growth Strongest Since 2009

The growth of jobs in the United States increased in the month of January and wages rose further up to a significant extent. This particular growth in the rate of wages was the strongest since the year 2009. This growth rate was recorded to be the highest annual gain in more than about eight and a half years as a result of which the expectations that inflation will be pushing up higher this year as the strengthened labor market was hit with complete employment. It was seen that jobseekers lined up for applications during a special job fair named; Amazon Jobs Day were being held at ten of the fulfillment centers throughout the United States. This particular job fair's primary aim was to fill more than about 50,000 jobs at the retail giants Amazon's fulfillment centre in Fall River in Massachusetts.

Per the reports of the Labor Department, on Friday, the payroll of Nonfarm jobs gave a high jump to about 200,000 jobs in the previous month after the rise to about 160,000 in the month of December 2017. The rate of unemployment remained at the same position at 4.1 percent which is at a 17-year old low. In the month of January, the average earnings per hour increased by 0.3 percent in January this year to about 26.74 dollars which were the result of the solid building up of 0.4 percent of an increase in the month of December 2017. As a result of this, the year on year earnings per hour was boosted to 2.9 percent which is actually the largest since the month of June in the year 2009. In December 2017, the rate was 2.7 percent. On the other hand, the workers had put less time at work in the previous month that resulted in the falling of the workweek to 34.3 hours which is the shortest in the time period of four months from about 34.5 hours per week in December 2017.

The vigorous report of employment underscored the strong momentum in the economy of the United States which clearly raised the possibility that the Federal Reserve might show a little bit more aggression in raising the rates of interest this year. The Central Bank of the United States had previously forecasted three rate increases in this particular year after the increase of the costs of borrowing for three times in the previous year 2017.

January 16, 2022 - 17:32
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