WASHINGTON (AP) - The unemployment rate in the US It fell to a seven-year 5.5 percent - a level that is usually considered the sign of a healthy workforce. However, this figure is not as encouraging as it sounds.
While US employers added 295,000 jobs a solid in February, and the unemployment rate fell to 5.7 percent, declined primarily because many people have stopped looking for work and are not officially counted as unemployed, the government reported Friday. In addition, wage increases are almost stagnant.
These trends suggest that the labor market is improving rapidly and is not as healthy as it seems.
This complicates the task of the Federal Reserve, to detect when the economy enough to withstand higher interest rates strengthened. The Fed is considering raising interest rates from June
In a report dated Friday, the employers have produced 12 straight on monthly labor gains 200 000. This is the longest period 1994 to 1995 inclusive.
The United States can easily overshadow most other major economies. For example, the unemployment rate in the 19 countries sharing the euro 11.2 percent, double the US rate.
Solid gains in employment in the US seem convinced many investors that the Fed will soon raise interest rates in the short term it controls. Investors sold the ultra-safe Treasury Friday, a sign that many expect a rate hike. The yield on the benchmark 10-year Treasury rose to 2.24 percent from 2.11 percent.
And they cast shares. The Dow Jones Industrial Average fell 276 points in afternoon trading.
An unemployment rate of 5.5 percent is generally consistent with what economists call "full employment" - like where the share of the unemployed is so low that the employers to increase wages to find enough qualified workers.
Companies and raise prices to pay for higher wages. And the Fed usually follows suit by increasing the reference interest rates in the short term slow the pace and prevent inflation.
But the scars of the Great Recession make more fluid and complicated process.
"5.5 percent did not mean what it was before," said Diane Swonk, chief economist at Mesirow Financial. Full employment "is still a moving target, and moved up."
Since the recession ended in June 2009, the proportion of adults working or looking for work fell to a depth of 37 to 62.8 percent. It moved to the brand for most of last year.
Economists estimate that half of the decline due to the aging of the population is the baby boom generation retires.
But another factor is that many Americans discouraged about their job prospects and have stopped looking for. Unemployed not counted as unemployed if they are not actively seeking work.
This helped reduce the rate from its peak of 10 percent in October 2009 artificial.
Many economists also support the economy is not near full employment if wages do not increase. And average hourly wages rose only 3 cents to $ 24.78 in February from the previous month.
Megan Greene, chief economist at John Hancock Financial Services, noted that hourly wages fell in February from January in the sectors of construction and mining. These figures are higher than the unemployment rate declined in the spirit of the Fed President Janet Yellen said, and a rate hike might deter soon.
However, many economists expect the Fed the course, the increase in June or September.
The interest rates in the short term usually three percent or 4 percent if the economy at full employment. You are now at a record level of zero, and inflation is virtually nonexistent.
Tim Hopper, chief economist at TIAA-CREF, said that if unemployment continues to fall and inflation starts to pick up later this year, "the Fed is behind the curve, if they have not already started to raise interest rates."
Nearly 3.3 million Americans gain more paychecks than 12 months ago. This has stimulated consumer spending in the US and the global economy. Many big exporters like China, Germany and Japan are dependent on US spending by their growth.
The proceeds from the setting in February were widespread. Some industries, with the largest gains are mainly low-paid work: Hotels and restaurants added 60,000 jobs, 32,000 retailers.
But the best-paid areas have also been added jobs: professional and business services, including accountants, engineers and lawyers won 51,000, Construction and Financial Services 29 000 10 000th
Growth slowed in the last three months of last year at an annual rate of 2.2 percent after roaring with nearly 5 percent last spring and summer. But consumer spending rose, a sign demand remains strong.
Dave Long, CEO of Orange Theory Fitness said the improvement in the economy a boost to your workout studio, where fast-growing business. He opened the first five years ago in Fort Lauderdale, Florida. The company currently employs more than 200 locations in the United States
"As people have a little money ... opened their minds a bit more about the product you how to spend our," he said.
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