Key indicators: US jobs report shows increased pressure on American job market
The upswing continues in the US, and employment has increased once again. Every third company now has jobs they cannot fill.
Americans added 250,000 new jobs in October, while unemployment remained unchanged at 3.7%. Wage growth has topped 3% for the first time since 2009.
“The upswing in the US labour market has now lasted for more than eight years, which has resulted in new jobs for almost 20 million Americans. Unemployment is at its lowest since 1969, which is positive for jobseekers but puts the labour market under pressure. More than every third American company currently has jobs they cannot fill,” says Senior Analyst Allan Sørensen, the Confederation of Danish Industry.
“Obtaining sufficient employees to keep the American upswing going is a major challenge. Donald Trump is pursuing a highly irresponsible financial policy and has not implemented labour market reforms to secure the necessary labour,” says Senior Analyst Allan Sørensen, the Confederation of Danish Industry.
“Obtaining sufficient employees to keep the American upswing going is a major challenge. Donald Trump is pursuing a highly irresponsible financial policy and has not implemented labour market reforms to secure the necessary labour,” says Senior Analyst Allan Sørensen, the Confederation of Danish Industry.
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Wages have advanced 3.1% over the past year. Consumer prices (excluding energy and foods) increased 2.0% over the past year.
“Wage growth has now started to accelerate. The Fed has already increased interest rates three times this year and yet another hike is likely before the end of the year,” says Senior Analyst Allan Sørensen.
Wage growth has picked up, unemployment is at its lowest in almost 50 years, and inflation has hit the ideal target of 2%. Wage growth has ensured a solid increase in real income, and combined with high job security this has lifted American consumer confidence to new heights.
“There is definitely potential for Denmark to increase exports to the US. American consumption is on the rise, the economy is growing and the dollar is relatively strong. This makes the American market very promising for Danish export companies,” says Senior Analyst Allan Sørensen.
Last year Americans purchased Danish goods and services worth DKK 125 billion, making the US Denmark’s second-biggest export market, surpassed only by Germany.
