The growth in US jobs was less compared to the expected last month and one of the possible reasons for the weak job growth could be a tight labor market. This year, 155,000 jobs were added across the manufacturing, transportation and health care firms contributed to the US job growth. Employment opportunities were available for people interested in applying for positions in the transportation, manufacturing and healthcare sectors.
The unemployment rate did not change and it was still at the rate of 3.7%. The fewer employment opportunities could not influence the unemployment rate at all.
It was observed that the private sector worker’s average hourly pay increased at a yearly rate by 3.1%. Slowly, at this rate, the average hourly pay for workers throughout the year was rising.
The employment opportunities for people were less than the average number of jobs each month throughout the whole year. The employers added fewer jobs compared to the earlier estimation for the months, September and October this year.
The decrease in the number of jobs added to the employment report may have been the reason for the present scenario for the recent weeks of the financial market in the US economy. Somehow, the state of employment in the US could be the cause for the situation of the financial market.
The economists have predicted that the creation of jobs will diminish further because the business will face difficulties in finding workers. The businesses will find it hard to acquire new and more workers for their organization, as an expected result, the growth in jobs will weaken.
The economic growth is anticipated to slow down the next year according to estimation because of the reduction in the expenditure of government and new tax cut. A further rise is expected in the interest rate for the fourth time this year. Also, an economist has suggested that the economic growth will slowly regain its potential speed and pace.