Federal Reserve Chairman Jerome Powell says the link between unemployment and inflation may be resting rather than poised for a revival. The jobless rate's decline to a 48-year low will put that view to the test.
While unemployment fell more than forecast in September to 3.7%, the lowest since December 1969, average hourly earnings climbed 2.8% from a year earlier, slowing as projected from a 2.9% advance the prior month, a Labor Department report showed Friday. Hiring eased to 134,000, reflecting the fallout from Hurricane Florence, with 299,000 people being away from work due to bad weather.
The figures suggest the job market remains tight — with hiring outpacing labor-force growth and perhaps pushing the economy beyond full employment — though it's yet to spark a significant acceleration in wages. The coming months will indicate whether pay gains and prices will finally surge in response to a historically low unemployment rate, a development Powell says he doesn't expect.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
- Exclusive discounts on ALM and CU Times events.
- Access to other award-winning ALM websites including Law.com and GlobeSt.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
