If anyone wondered if President Trump could guide the US towards greatness the US wage that just hit a nine-year high should be the answer. In the construction sector alone another 23,000 workers were hired last month.
With the annual wage growth hitting a nine-year high in the economy of the US job creation was over that, that was expected. The wage growth also increased the average hourly rated by 0.4% in August 2018 and the annual rate rose by 2.9%, which is since June 2009, the fastest pace.
With the increase in professional services and the construction sector another 201,000 jobs were added in the last month and with the strong growth in wages, it is expected that the US will have a rise in interest rates at the end of this month. Two raises have been enjoyed this year by the US Federal Reserve due to meet later this month on the 25th and 26th of September. The rise in the dollar follows in response and the dollar index measures favourably against several other major currencies and have just hit a two-day high.
The Raise American Citizens Have Been Waiting For
According to the US job report, the number of jobs created for many years has never been a headline or the unemployment, what was mostly focussed on was the paycheck of Americans. For almost a decade wages remained unchanged as the economy had to recover from the financial crises of 2007 and 2008.
Finally, some good news was shown by the August jobs report and it is that news filtering through to the workers no matters if it creates a Federal Reserve headache. July’s downwardly total of 147,000 meant a high August job creation figure and the July and June revisions meant 50,000 fewer jobs were created than estimated, while the unemployment rate remained unchanged at 3.9%.
In the last month, the business services industries added another 53,000 posts and in construction, another 23,000 workers were employed. Pantheon Macroeconomics, chief economist, Ian Shepherdson shared in a news conference that the wages are not yet rising at a fast-enough rate to scare the Fed, although further gains are expected and especially with the lag of unemployment.
Fewer US Citizens Are Now Stuck in Part-Time Jobs
In July there were more opening for employment than the number of unemployed workers and the US started tracking the ratio. New highs have been reached by consumers confidence since the days of George W Bush and every single metric show that American workers are simply thriving. In general, the economy received a high rating from all citizens and many that were previously stuck in part-time employment now have a variety of full-time option including benefits. In America, times are getting better and it seems to be happing fast and real wage growth is welcomed while some forgive the Trump economy that still may leave a lot to be desired.