Economic News in the USA

16 January 2020 According to a report released by the Bureau of Labor Statistics (BLS), women held the majority of jobs in the US labor market in December. The statistics revealed that 50.04% of American job positions were occupied by women, excluding the self-employed and farmworkers. The figure is the first instance of a female majority recorded in almost a decade.

Experts are crediting the surge in female employment to the growth of the service sector, primarily health care and education. Both of these industries, predominantly female, added 36,000 more jobs in December as compared to November. Health services including daycare, home health care and food preparation have made it easier for women to enter the workforce. However, despite some working in a highly paid sector such as medicine, most women still hold low-paying jobs.  Women & Jobs

10 January 2020 According to statistics released by the US Labour Department, wage growth in the country dropped below 3% in December for the first time since July of 2018. This came after the wage growth rate slipped from 3.6% in October to 3.1% by November end. However, the unemployment rate maintained at 3.5%, a 50-year low for the country. While economists estimated injections of at least 160,000 jobs into the economy, the December figures fell short at 145,000 jobs. The figure is significantly lower than November’s robust gain of 256,000 jobs. The report cites that the manufacturing and mining sectors experienced major job losses of 12,000 and 9,000 workers, respectively. Take the salary survey!

6 January 2020 - According to the National Employment Law Project (NELP), an advocacy group, minimum wages are set to be revised across 24 US states in 2020. That includes 72 jurisdictions and 48 cities. 20 states out of the 24 have implemented the pay raise from January 1, 2020. The remaining jurisdictions, including New York, are expected to join by the end of the month. Researchers believe that the move will help workers  deal with increasing costs of living, especially for the lowest-paid workers in the country. Just last year, the US House of Representatives passed the Raise the Wage Act which proposed to double the federal minimum wage from $7.25 to $15/hour. However, the act did not make it past the Senate. Read more about Minimum Wages

18 December 2019 - Navistar, one of America’s largest truck manufacturers, is planning to fire employees owing to drying demand. Navistar is set to dismiss roughly 1,300 of its employees around the globe following Cummins Inc, the truck-engine maker, which dismissed 2,000 of its employees in November. The move will bring down Navistar’s global employment by around 10%. The cost-cutting wave is also affecting employees of backward linkage industries such as those of the suppliers. A large volume of truck orders was placed in 2018 in response to growing freight volumes. The surplus caused the prices to plunge and along with them, the orders for more trucks. Employee dismissal

6 December 2019 - According to a report released by the US Labor Department, US employers hired 2,66,000 workers in November. This figure is inclusive of nearly 50,000 General Motors’ workers who resumed working after a six-week strike. November also saw a slight drop in unemployment to 3.5% with the hiring gains. The steady hiring trends mark the 21st consecutive month when unemployment has been lower than 4%, a level considered to represent full employment. Additionally, wages are also up by 3.1% over the last year. Uniform growth was observed in the US economy with the manufacturing, healthcare and hospitality sectors gaining roughly 50,000 jobs each. Take the salary survey