The number of US jobless claims fell by 1,000 to 214,000 in the week ending November 3, staying at a 45-year low. The decline in data is in line with the expectations of economists.
The four-week average, considered a better measure for the labor market, reached 213,750, remaining broadly stable over the previous week. The preliminary seasonally adjusted data shows that the proportion of US jobless claims was 1.1% for the week. The unemployment is at 3.7%, the lowest level since the 1960s.
From the latest monthly labor market data, it has become clear that companies have begun to raise wages to retain and attract new talent against the backdrop of an increasingly tightening labor market.
The US employers have created 250,000 new jobs in October and have risen wages at the fastest pace since 2009. The consumer confidence is now the highest of 18 years and spends freely, boosting economic growth. The US economy has been expanding for 10 years – the second-largest such period in the country’s history, and October is the 100th consecutive month of new appointments – also a record-breaking period.
Average hourly wages in the US rose by 0.05 USD, or 0.2%, last month after a 0.3% growth in September. On an annual basis, the increase reached 3.1% – the highest since April 2009. This means that inflation will stay around the Fed’s target of about 2% for some time.