The U.S. unemployment rate decreased, in August, to a seven-year low as employers added 173,000 jobs which is evidence to the Federal Reserve in figuring out whether to increase interest rates or not.
The Labor Department says the unemployment rate decreased to 5.1 percent from 5.3 percent which is known to be the lowest since 2008.
In August, the hiring numbers was the lowest in five months, but the government revised up the June and July job growth by a combined 44,000. From June through August, the economy generated a solid 221,000 jobs a month, up from an average of 189,000 in March through May, according to NBC News.
Although there are numbers of employment, it can possibly encourage the Federal Reserve to raise rates at its meeting on September 16 to 17 for the first time in a decade. Still, stock market turbulence, a persistently low inflation rate and a sharp slowdown in China could complicate its decision, according to NBC News.
When stocks opened– it was low immediately after releasing the numbers in August.
It’s been three years that the job rates have been steadily growing– putting nearly 8 million Americans back to work. Officials are most likely satisfied with the progress of the job market. When the Federal Reserves begin increasing borrowing rates, the higher rates are likely to eventually ‘ripple’ through the economy.
Americans could face higher costs for mortgages and other loans, though the increases would likely be modest and gradual.
The global economy and stronger dollar, which makes U.S. exports costlier overseas, could slow growth for the next 12 months, according to NBC News.
Restaurants, retailers, banks and construction companies are positively expanding at the fastest rate yet in nearly a decade. Companies that are small as well as to services firms are doing extremely well, according to the Institute for Supply Management.
The number of Americans seeking unemployment still remains extremely low.