Arab Today, arab today us labour market continues to improve triggering rate hike debate
Last Updated : GMT 04:45:11
Arab Today, arab today
Arab Today, arab today

US labour market continues to improve, triggering rate hike debate

Arab Today, arab today

Arab Today, arab today US labour market continues to improve, triggering rate hike debate

US labour market
Washington - XINHUA

The U.S. job market continued steady growth momentum in May, triggering market debate over the timing for the Federal Reserve's first interest rate hike in almost nine years.

The U.S. economy added 280,000 jobs in May, the strongest monthly gains so far this year, beating market expectation of around 220,000, while the unemployment rate edged up to 5.5 percent from April's 5.4 percent, the Labor Department reported Friday.

Job gains occurred in professional and business services, leisure and hospitality and health care, while the mining and logging employment has seen the fifth consecutive monthly decline, likely reflecting cutbacks in oil production.

Following the release of the report, the U.S. stocks opened lower, as the strong job report heightened investors' concern that possibility for the Federal Reserve to raise interest rates this year becomes higher.

After a weak first quarter performance, some economists argue the Fed should wait some time to assess whether the factors affecting the first quarter economy were transitory or persistent, before it moves to the interest rate hike.

The International Monetary Fund on Thursday cut U.S. economic growth forecast for 2015 down to 2.5 percent and called for the Fed to delay its rate hike until the first half of 2016, as the current inflation rate in U.S. does not warrant a rate hike without risks in the next few months.

In regard to the labor market, the IMF said long-term unemployment, subdued participation, and high levels of part-time work point to remaining employment slack, and wage indicators on the whole have shown only tepid growth.

The number of long-term unemployed, or those jobless for 27 weeks or more, held at 2.5 million, accounting for 28.6 percent of the unemployed. The labor force participation rate, the share of the working-age population employed or looking for a job, ticked up to 62.9 percent in May. Since April 2014, the participation rate has remained within a narrow range of 62.7 percent to 62.9 percent.

Average hourly earnings rose by 8 cents to 24.96 U.S. dollars in May. Over the year, the figure has risen by 2.3 percent, a little better than the 2 percent annual pace in recent years.

Lael Brainard, governor of the Federal Reserve Board, said this week that there is still room for employment and hours worked to grow further, as the labor market slack cannot be captured by the unemployment rate. She will take some time to assess the underlying economic strength in view of the soft data at the beginning of this year and the headwinds from the global economy, when considering the first interest rate hike, said the senior official.

However, most Fed officials, including the Fed chair Yellen, have said that they expect to begin raising the rates this year. Market investors widely see September or even later as the most likely time for a Fed rate increase. The Fed has kept its benchmark short-term interest rate near zero since December 2008.

In her recent speech, Yellen also shared similar view with the IMF, saying the labor market has not reached its full strength despite the significant gains of the past couple years, as there is still slack in the labor market, because some people forced to leave job market due to lack of job opportunities.

But she warned of the risk of overheating the economy with a delayed interest rate hike, and said that if the economy continues to improve as she expects, it will appropriate to raise the interest rates at some point of this year.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today us labour market continues to improve triggering rate hike debate Arab Today, arab today us labour market continues to improve triggering rate hike debate

 



Arab Today, arab today
Arab Today, arab today Hats, scarves add beauty to women

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women
Arab Today, arab today Tourist guide reveals methods of tourist attractions

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions
Arab Today, arab today To release new antiques collection

GMT 20:33 2017 Friday ,17 February

To release new antiques collection
Arab Today, arab today Leader Omar Abdel Rahman dies in US prison

GMT 19:00 2017 Sunday ,19 February

Leader Omar Abdel Rahman dies in US prison
Arab Today, arab today Murder of 2 reporters in Dominican Republic

GMT 22:45 2017 Thursday ,16 February

Murder of 2 reporters in Dominican Republic

GMT 09:15 2017 Friday ,17 February

Asia stocks retreat after week-long Trump rally

GMT 08:14 2017 Friday ,17 February

Bahrain Bourse daily trading report

GMT 21:28 2017 Thursday ,16 February

US Stocks End High on Tuesday

GMT 21:18 2017 Thursday ,16 February

Chinese Yuan Strengthens to 6.8632 Against USD Wednesday

GMT 09:55 2017 Thursday ,16 February

Robust Omani Riyal exchange rate affirmed

GMT 09:00 2017 Thursday ,16 February

Bahrain Bourse daily trading report
View News in Arabic - Business: أسواق مالية
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today Tragic fluctuations of Bakhtiari's life revealed

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Porsche reveals new 2018 Panamera

GMT 17:31 2017 Wednesday ,15 February

Porsche reveals new 2018 Panamera
Arab Today, arab today Actress Nadeen Al Rassi views art as her entity

GMT 07:30 2017 Saturday ,18 February

Actress Nadeen Al Rassi views art as her entity
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 07:05 2017 Friday ,17 February

Singer Diana Karzon will issue a new album soon

GMT 06:40 2017 Friday ,10 February

MP calls for removing text from Islamic story

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 14:04 2017 Tuesday ,14 February

"Lagom" new Swedish concept in interior design

GMT 12:07 2017 Thursday ,16 February

Bite-mimicking malaria vaccine

GMT 09:03 2017 Thursday ,16 February

Tour guide praises women’s beaches

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 21:42 2017 Sunday ,12 February

Rania al-Ghazali designs candles of bubbles
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday