The US government on Friday announced figures about how the economy fared during the month of October. This comes barely a month after the figures were distorted by a number of disasters in the country including hurricanes and wildfires. With the recent report, it can be viewed that the US economy has entered the strongest stretch in terms of growth in the last few years. However, the recent jobs data did nothing to answer the question why no significant wage gain has been realized despite job growth. In the month of October, the average hourly earnings managed to increase by 2.4 percent. This means that the wage growth can barely keep up with inflation in the country. However, dividends are still paltry according to the economics. This has been made possible by the fact that the US unemployment is at its lowest since Bill Clinton was president. The use economy has also been characterized by a tight labor market. Euler Hermes North American chief economist Dan North says that the US economy is trending in the right path. However, he lamented that the trend is still unacceptable and unexciting. The labor department confirmed that US employers added 261,000 jobs to the US economy.
This was a stronger rebound following hurricanes in Texas and Florida. These two hurricanes prevented hundreds of thousands of workers from reporting to their jobs. However, the effects of the two storms were evident in industries that depend on weather such as the hospitality sector and the leisure sector. Since September, these two industries have lost nearly 102,000 jobs. However, the report revealed that the damage to the labor market was not as bad as it was first thought to be. Initially, the Labor Department estimated that almost 33,000 jobs would be lost. However, the department had to change this when the actual figures emerged. 18,000 jobs had been gained. The revision ensures that the US economy has added jobs for 85 straight months. This is a new record according to the Labor Department. For the last two months, economists have warned that people should not pay attention to the two months’ report. Instead, they should focus on the longer-term picture. On the other hand, it was revealed that the unemployment rate in the country fell to 4.1 percent. This happens to be the lowest level for the last seven years. Economists continue to speculate that there are signs that the economy is gaining strength.