The unemployment rate in the USA fell to 4.1 percent in September, after 4.2 percent in the previous month. As a result, the number of unemployed fell to 6.8 million.
The US Department of Labor announced this on Friday in Washington. According to the ministry, companies in the USA created around 254,000 new jobs outside of agriculture, significantly more than many had expected. The number of long-term unemployed increased slightly to 1.6 million people.
“The data surprises positively wherever you look,” commented Thomas Altmann from QC Partners. “254,000 newly created jobs are the best value since March. The previous month was revised upwards.”
Altmann expects that the US central bank could therefore forego another major interest rate cut. “The job growth and the decline in the unemployment rate alone speak against another interest rate cut of 50 basis points. In addition, wages in the USA are rising more strongly again,” he said. “There will be another labor market report before the next Fed meeting. But as of today, another 50 basis points are a long way off.”
The US jobs data is being watched like a hawk by investors around the world. If the labor market is robust and inflation is high, interest rate cuts become less likely. Stock marketers would be happy about this, among other things because savings accounts would become less attractive as an alternative to shares and companies and other players would be able to get loans more cheaply.
(Source: Dts News)
