You have to go back 48 years to find the jobless rate in America as low as 3.7 percent.
The 48-year unemployment low of 3.7% in September shows the stellar economy continues, as 134,000 new jobs were added to the economy.
The good news is that sets the stage for a strong holiday season.
The bad news is that payroll and wage growth slowed, due probably to Hurricane Florence, analysts said, though the boost from last year’s tax cuts may also be receding.
Service providers increased jobs by 75,000, the lowest in a year, and retail jobs decreased by 20,000.
In all, the economy added 134,000 jobs last month, after a revised 270,000 gain in August. Wages rose an annual 2.8% in September, following a 2.9% increase in the prior month.
Many economists predict the jobless rate will fall even further in the months ahead.
The economy might not be great for many wage earners, but it’s been a long time since it’s been this good. And the biggest source of strength is the labor market.
Years of steady hiring have knocked unemployment back to levels last seen during the Clinton presidency. And layoffs are at the lowest levels in 50 years.
The ultra-low unemployment is now forcing businesses to offer better pay to filling a record number of job openings. That’s boosted the confidence of Americans to the highest level in 20 years and also given businesses more confidence to invest and hire even more workers.
The result: Growth in 2018 might top 3% for the first time in 13 years.