US unemployment rate is now lowest since April 2000

“May’s rebound in jobs together with the report of solid income growth and the rise in consumer confidence points to the economy functioning very well,” NRF chief economist Jack Kleinhenz said. “Solid fundamentals in the job market are encouraging for retail spending, as employment gains generate additional income for consumers and consequently increase spending.”

“With the unemployment rate of 3.8 percent at its lowest since April 2000, shows that many industries including retail are hiring and creating jobs at a steady pace. We expect this rate to continue to decline as the fiscal stimulus and tax cuts are further absorbed in the economy,” Kleinhenz said.

May’s numbers followed an upwardly revised combined increase of 19,300 jobs for March and April. The three-month moving average in May showed an increase of 19,000 jobs, NRF said in a press release.

Retail registered monthly gains nearly in all segments with the most robust increases concentrated in three sectors: general merchandise stores, which were up 13,400; clothing and clothing accessory stores, up 6,500; and building and garden supplies, up 6,000. Losses were concentrated in two sectors: health and personal care stores, down 800 jobs; and non-store which includes online, down 1,100 jobs.

Economy-wide, average hourly earnings in May increased by 8 cents – 2.7 per cent – year-over-year.

Kleinhenz noted that retail job numbers reported by the department of labour do not provide an accurate picture of the industry because they count only employees who work in stores while excluding retail workers in other parts of the business such as corporate headquarters, distribution centres, call centres and innovation labs.

The labour department numbers also exclude automobile dealers, gasoline stations and restaurants. (RKS)

Fibre2Fashion News Desk – India