Last year was the best year for the US labor market since 1999. Only in December it was created 252,000 new jobs in the US, according to figures that were presented of the US Department of Labor yesterday.
Unemployment is now down to 5.6 percent after falling at a steady pace since the top ten percent in October 2009. Thus, the share of unemployed in the US soon back at it same level as before the financial crisis that hit the country in autumn 2008.
The series of months with a fall in unemployment is now up to 58. Since then it has created 11.2 million new jobs in the US, according the country’s authorities.
More arises out of the labor
But the US stock exchanges reacted still negative when the numbers were presented – despite the fact that the number of new jobs in December was higher than expected.
Part of the reason that share prices fell is probably that the lower unemployment also because more Americans give up searching for a new job. The proportion of inhabitants over 16 participating in the labor market is now down to 62.7 percent, the lowest level in 37 years.
The labre stock response is probably due to that hourly wage goes the wrong way. In December fell the average salary per. hour by 0.2 percent after increasing 0.4 percent in November.
– It is still a buyer’s market, said Diane Swonk, chief economist at Mesirow Financial to The New York Times.
Now interest rates rise again
Unemployment is now expected to come down to around five percent by 2015, according to several analysts who spoke to the American press yesterday.
This combined with a general growth in the US economy, may again cause the Fed decides to raise interest rates during the next six months.
– The economy improves faster than expected, giving the central bank good reasons to raise interest rates already in March, said Paul Dales, senior analyst at Capital Economics, the website cnbc.com.
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