Americans rejoiced the news that the U.S added 199,000 jobs in November and the unemployment rate dropped to a 50-year low of 3.7%.
The U.S Bureau of Labor Statistics reported that job gains occurred in the professional, business services and the healthcare sectors. While the labor force participation rate remains unchanged, the number of employed citizens increased by 262,000, leading to a decline in the unemployment rate.
The dip in the unemployment rate can be attributed to the strong economy that has followed up from last year’s strong fiscal performance. As the current economic administration has relaxed labor regulations and reduced taxes, businesses have accelerated hiring decisions.
Fuelled by the excellent news, the stock markets hit record-highs as investors rushed to buy more shares of companies enjoying strong growth prospects. However, the microeconomic and macroeconomic implications of the same are yet to be revealed.
Interestingly, the U.S. Treasury yields have maintained a steady growth, signaling that investors are becoming less optimistic about the economic performance going forward.
The decline in the unemployment rate, which has fallen to a level not seen since 1969, is a great sign of success. Not only does this prove that the U.S. labor market is healthy and robust, but also that businesses across various sectors are actively engaging with potential employees. There is much to be optimistic about in terms of economic prospects for the near future.
In conclusion, the U.S. added 199,000 jobs in November and the unemployment rate fell to a 50-year low of 3.7%. Investors may be growing increasingly wary of the market’s performance in the coming months, but the signs remain that the U.S. economy is on a solid track towards growth.
