U.S. unemployment rate falls but earnings inequality widens

U.S. unemployment rate falls but earnings inequality widens

Over the year, the unemployment rate and the number of unemployed per.

The September results were 25 percent below what economists had forecast.

The US economy continued to smash expectations and break records in September, with recently released data showing the unemployment rate dropping to just 3.7%; the lowest level since December 1969.

According to the department, total nonfarm payroll employment increased by 134,000 and job gains mainly occurred in professional and business services, health care, transportation and warehousing.

There is little sign that President Donald Trump's trade wars could threaten the recover as manufacturing added 18,000 jobs.

Within healthcare, hospitals showed the most employment growth last month, adding 3,800 more jobs than the 8,200 added in August.

The figures suggest the job market remains tight - with hiring outpacing labor-force growth and perhaps pushing the economy beyond full employment - though it's yet to spark a significant acceleration in wages. But this is "still impressive given the mature stage of the current expansion", he said in an analytical note. Average hourly earnings rose 0.3 per cent from the previous month.

The unemployment rate among young people (under 30) was 15.9 percent, the unemployment rate among women was 13.4 percent.

ADP reported private sector employment increased by 230,000 jobs in September.

Analysts on average had expected a decline of unemployment to 3.8% in September, however, the statistics exceeded expectations.

Wall Street closed down sharply following the news, extending losses from Thursday's selloff due to a sudden jump in bond yields.

As usual, the focus will be on wages - but even more so this time.

The tightening of the labor market is leading to an increase in wages. The annual advance of 2.8 percent matched economist projections for some cooling in the year-over-year rise, as a strong number for September 2017 wages presented a hard comparison. Teen unemployment fell by 0.3 percent to 12.8 percent.