US unemployment figures decline while the labor market slows down
The latest jobs data revealed by US government on May 2, 2017 demonstrate that official unemployment rate in the country dropped to 4.3% in May, the lowest number in 16 years. While this figure was reached partially due to 429,000 people leaving the labor force for retirement, May’s jobs report suggests the US labor market maintains momentum.
With growing working-age population entering the US labor market each year, economists evaluate that approximately 100,000 jobs should be created each month to keep up with the new workforce. A moderate increase of 138,000 in payrolls was registered in May compared to the 181,000 monthly average over the past 12 months, demonstrating sufficient figures to absorb new graduates, but also deceleration in the overall jobs growth.
Particularly, massive job cuts took place in manufacturing and retail industries as traditional retail faces tough competition with online merchants. The largest number of salaried jobs were created in health care, services industry, leisure and mining.
