Annual Wages Rise Most Since 2009 as US Adds 201,000 Jobs

Annual Wages Rise Most Since 2009 as US Adds 201,000 Jobs

Annual Wages Rise Most Since 2009 as US Adds 201,000 Jobs

$DIA, $SPY, $QQQ, $RUTX, $VXX

US job growth accelerated in August and wages notched their largest annual increase in more than 9 years, the clearest signs that the economy was so far weathering The Trump Administration’s escalating trade dispute with China.

The Labor Department’s closely watched employment report published on Friday also showed slack in the jobs market was rapidly diminishing, with a broader measure of unemployment falling to a mark not seen since Y 2001.

The report cemented expectations for a third interest rate increase from the Fed this year when policymakers meet on 25-26 September

Analysts say The Trump Administration’s $1.5-T tax cut package and increased government spending were shielding the economy from the trade tensions, which have also seen Washington engaged in tit-for-tat tariffs with other trade partners, including the EU, Canada and Mexico.

NFPs surged by 201,000 jobs last month, boosted by hiring at construction sites, wholesalers and professional and business services, the Labor Department said.

There were also gains in transportation and healthcare employment.

Average hourly earnings increased 0.4%, or 10c in August after rising 0.3% in July. That raised the annual increase in wages to 2.9% in August, the largest gain since June 2009, from 2.7% in July.

Wage growth has been the labor market’s Achilles heel and last month’s increase fit in with economists’ expectations that inflation will continue to bounce around the Fed’s 2% target for the remainder of this year and into early Y 2019.

A broader measure of unemployment, which includes people who want to work but have given up searching and those working part-time because they cannot find full-time employment, fell 1/10th of a percentage point to 7.4% in August, the lowest level since April 2001.

The unemployment rate was unchanged at 3.9%.

Economists polled by Reuters had forecast NFPs increasing by 191,000 jobs last month and the unemployment rate falling to 3.8%. The economy created 50,000 fewer jobs in June and July than previously reported.

Job growth averaged 185,000 per month in the past 3 months. The economy needs to create 120,000 jobs per month to keep up with growth in the working-age population.

Friday, the major US stock market indexes finished at: DJIA -79.33 at 25916.54, NAS Comp -20.18 at 7902.57, S&P 500-6.37 at 2871.42

Volume: Trade on the NYSE came in at 707-M/shares exchanged

  • NAS Comp +14.5% YTD
  • Russell 2000 +11.6% YTD
  • S&P 500 +7.4% YTD
  • DJIA+4.8% YTD

HeffX-LTN’s US Major Stock Market Indexes Technical Analysis for the Week Ended 7 September 2018

Date Symbol Price Technical Analysis Support Resistance
7 September 2018 QQQ 181.21 Neutral (0.20) 179.60 182.77
7 September 2018 DIA 259.16 Very Bullish (0.55) 259.57 261.48
7 September 2018 SPY 287.14 Bullish (0.34) 285.40 288.40

Have a terrific weekend

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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