The Unemployment Rate In US Falls To 7-Year Low

The US economy expanded at 0.2 percent in the first quarter of this year. The reasons of struggle for sluggish economic period was decrease in exports because of weakening of dollar, bad weather that hindered consumer spending and drop in oil prices. The economists expected a drop in the unemployment rate at a higher percentage with approximately 228,000 job prospects created in the economy.

However, the unemployment rate in United States fell to 5.4 percent which in March, 2015 was at 5.5 percent. In the month of April the payrolls increased to 223,000.The increase in number of job gains is still lower than what experts expected but still it is rated as being the lowest since May 2008. The Federal Reserve tends to associate the decrease in unemployment with full employment and people returning to the labor force.

The government added 10,000 jobs but vital role of job growth in the economy came from the private sector. Private payrolls are added up to 213,000. Most of the job additions were seen in healthcare with 62000 new jobs. The decrease in oil prices brought unemployment in oil industry but the manufacturing industry had moderate job growth with approximately 1000 people being employed. There was also an addition of 45000 payrolls in construction sector.

During the past 12 months, the US economy had an estimation of 3 million new job creation opportunities. The Americans seem to join the labor force more encouragingly in the previous month increasing the participation rate to 62.8 percent which is 0.1 percent higher than March. Although the growth was slow but the unemployment rate is recorded to be the least in the past 30 years. In comparison to the last year, the hourly earnings in April increased by 2.2 percent on an average to $24.87.

The US economy now has more opportunities to pursue because of the stable market and huge growth in longer term payrolls. The investors took the news of renewed force in the economy delightedly. Even the impact was seen on government bond yields to decrease which has previously rising. The expected fall in unemployment rates and the job figures in real are still consistent with the Fed that would raise short-term interest rates in mid of this year.