US unemployment rate falls to record 3.5 per cent, job growth stable

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US unemployment rate falls to record 3.5 per cent, job growth stable

Amid a wicked week for the US economy that had witnessed its manufacturing activity falling to a decade-low figure and service sector activity plunged to its slowest since mid-2016, Friday’s (October 4th) US Labour Department employment data had displayed a brighter spot for US economy, as US unemployment rate was dropped to a decade-low figure of 3.5 per cent last month, while job growth had posted a decent upsurge, suggesting that the slowing US economy might have averted an almost inevitable recession despite trade tensions with most of its trade partners including China and EU, only if another Fed rate-cut could soothe up US economy further.

Nonetheless, despite a relatively upbeat depiction of US labour market on Friday (October 4th), the US Labour Department Report had encompassed some baleful indicators pointing towards growing risk to the record leg of expansion of the US economy, as wage growth failed to meet analysts’ estimate and manufacturing payrolls were declined for the first time since April this year.

Meanwhile, referring to the latest employment data which would likely to provide US economy with a little more time to grapple with an upcoming downside tilt, a chief economist at iCIMS in New York, Josh Wright said earlier on Friday (October 4th), “The unemployment rate usually rises ahead of a recession, so a fresh decline pushes out the timeline for any potential recession into late 2020 at the earliest.

” Meanwhile, according to Friday’s (October 4th) US non-farm payroll data, US economy had added 136,000 jobs on September, which was well below a monthly average of 161,000 this year, but still above a 100,000-figure required each month to cope up with an upsurge in the working-age population.