US jobless rate at lowest level since 2007; Sustained acceleration’ in manufacturing Donald Trump stands poised to inherit a US economy in rude health with new employment data published yesterday adding to growing evidence that the world’s largest industrialised economy is emerging from the long shadow of the 2008 global financial crisis.
The US added 178,000 jobs in November with the jobless rate falling to 4.6 per cent, its lowest since August 2007. The data added to expectations the Federal Reserve will raise interest rates for only the second time since the crisis when its policy committee meets this month.
The strong numbers, which mean the US economy has now added 15.6m jobs since its early-2010 nadir, comes at the end of a week where a key housing price index surpassed its pre-crisis peak for the first time and GDP growth for the third quarter was revised upwards to a robust 3.2 per cent.
The growing evidence of a return to economic health highlights a welcome paradox facing Mr Trump as he prepares to take office.
The president-elect’s victory came thanks to his ability to tap into economic discontent, particularly in the US rust belt that was highlighted by his flight to Indiana this week to announce a deal to save almost 1,000 jobs at air- conditioning manufacturer Carrier.
But the data suggest much of the repair job has already been done by his predecessor, Barack Obama. The OECD said in its latest forecast the US would be the best-performing major advanced economy next year, growing 2.3 per cent. Other data this week highlighted “sustained acceleration” in manufacturing.
Steven Mnuchin, Trump’s Treasury secretary nominee, this week promised to oversee an economy that would grow regularly at an annual rate of 3-4 per cent due to a combination of tax cuts and deregulation aimed at spurring business investment and hiring.
In a bid to give business a voice in economic policy, Mr Trump yesterday also announced the establishment of a special advisory body made up of top executives chaired by Blackstone’s Stephen Schwarzman and including Bob Iger, chief executive of Disney, and former General Electric boss Jack Welch.
Yesterday’s jobs report did contain some cautionary data. Average hourly earnings dipped 0.1 per cent from the previous month. But economists said the slip in wages was largely a seasonal blip in hiring patterns.
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