US unemployment rate falls to 4.1 per cent, lowest in 17 years

WASHINGTON: US unemployment fell to its lowest level in nearly 17 years in October, according to data released on Friday, which President Donald Trump said was proof his policies were bearing fruit.

Job creation resumed climbing after two late-summer hurricanes hit the economy, albeit at a slower rate than expected, according to the Labor Department’s key monthly employment report.

But upward revisions to job creation in August and September meant the storms caused less damage than originally feared, making for an upbeat report.

Still, the data also showed a shrinking labour force and confirmed job creation in 2017 has lagged behind the last year of the Obama adminstration.

The US jobless rate fell to 4.1 per cent, down a tenth of a point from September, the lowest the US economy has seen since December 2000.

Employers added 261,000 net new positions as businesses reopened in the wake of Hurricanes Harvey and Irma, although economists had forecast a rebound of 300,000 new jobs.

But the data for September turned out not be as bad as initially reported, with 18,000 new jobs created, rather than a loss of 33,000 positions. Together with the upward revision for August, an additional 90,000 jobs were added for those two months.

The results generally showed US labour markets in good health, easily bouncing back from the storms that idled the US energy hub in southeast Texas and forced millions of Floridians to flee their homes.

“With nearly 1.5 million new jobs since the president took office, including over 260,000 last month, it’s clear his agenda is putting Americans back to work,” White House Press Secretary Sarah Sanders said.

Trump tweeted out a celebratory message on the report: “JOBS, JOBS, JOBS!”

Nevertheless, average monthly job creation now stands at 169,000 so far this year, significantly below the 192,000 monthly average recorded through October of last year. — AFP