Washington: US Labour Department has reported a huge reduction in the number of jobless in the United States. In the month of January, the number of people applying for the unemployment benefits in the United States reduced to 216,000 which is second lowest after January 1973. Financial analysts claim this to be the indications of the positive change in the US economy.
John Ryding, a financial analyst reacting to the ‘US Labour Department’ report said, “The US companies are no more eager to sack their employees.” The US job market is beyond “Full’ employment and the unemployment percentage has declined to four percent. These numbers are the lowest in the past 17 years, confirmed sources.
According to the experts, these changes in the job market will have its effects on the remuneration increase and economy. The reduction in unemployment can result in pay hikes and this can take the inflation index in the United States to 2%. The ‘Federal Reserve’ also had targeted a 2% inflation rate.
It is believed that the reduction trend, seen in January, will continue in February too. In the first two weeks of February, the number of people availing the unemployment benefits was dropped to about 222,000. This is considered to be a record after the economic recession in the last decade. The report states that 200 thousand new jobs became available in the month of January.
The US President had claimed that the economy is showing positive changes due to the tax rate cuts and the other important decisions. The US stock markets confirmed Trump’s claims of economic growth by reaching record heights. Following this, drop in unemployment rates also proves that decisions made by Trump are positive for the US economy.
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