"There are still too many people who want jobs but cannot find them. Too many who are working part time but would prefer full time work. And too many who are not searching for a job but would be if the labor market was stronger."
- Janet Yellen, Fed Chairwoman
Labour market in the United States is showing more signs of improvement, as claims for unemployment benefits in the country dropped to 280,000 for the week ended September 12, the lowest level in two months. Therefore, the four-week average level for jobless claims fell to just below 300,000 level. Moreover, the total number of people, who receive benefits, plunged to seven-year low of 2.43 million. According to the majority of experts, household spending and rising corporate orders forced companies to hire new employees. Also, the unemployment rate is likely to decrease in the nearest future, as initial jobless claims are only considered as an early sign of growing employment. The Federal Reserve, in turn, is waiting for the job market to perform even better, before they finally raise interest rates.
During its regular monthly meeting on Thursday, the Fed pointed not only on importance of general health of job market, but also on stable increase in full-time jobs' offerings, while too many new positions are being created as part-time ones at the moment.
Opposite to healthy labour market, construction sector in the U.S. declined in August, as new housing starts dipped 14.4% to reach 956,000 on a monthly basis. The biggest decline was seen in the West of the country, where the industry plummeted 24.7%. Alongside, building permits slipped 5.6% to 998,000 level.
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