Unemployment rate in the US now hits a new low since the post recession. Director of the Philadelphia Unemployment Project, John Dodds claimed that the difference is there, but there is no wage increase. People can still have their low paying jobs back, but they won’t be happy about it.
It can be recalled that the last time that the unemployment rate drops down to near 5.5 percent was in May 2008, which is around 5.4 percent. During that time, companies were getting rid of some of their workers because they don’t have the money to pay for them. As a result, there are more than 824,000 workers, who are unemployed, in just 10 months.
Last month, there was an increase in the employment rate in the manufacturing, construction, retail, financial activities, legal services, engineering, health care, food services, education, and government industry. However, Joel Naroff of Naroff Economic Advisors Inc., in Bucks County claimed that the government can’t brag about that as the hourly wages is still low.
Jason Hersh, one of the owners of Klein Hersh International, said that February was one of the best times for his company as the sales are up. Not so long ago, big pharmaceutical companies were trimming down their workers.
Now, his company is hiring workers and placing them on smaller Pharmaceutical firms. Some people might be pleased with the current situation of the unemployment rate, but the Wall Street still thinks that it is not enough. The good news might cause Federal Reserve to raise interest rates.