US unemployment rate drops to record 3.5% in November

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Last month, more than 266 thousand new jobs were created in the country

According to the US Department of Labor, last month more than 266 thousand jobs were created in the country, which significantly exceeded the 187 thousand expected by economists, the Associated Press reported on Friday.

The unemployment rate dropped from 3.6% in October to 3.5% in November, which is a record high over the past 50 years. Salaries at the same time increased by 3.1% compared to the previous year.

Investors optimistically reacted to the Ministry of Labor report – the Dow Jones index grew by more than 270 points in the morning trading.

The steady growth of the labor market has helped convince consumers that the economy is growing, guaranteeing income growth and American employment. Consumption has become an even more important driver of growth after trade conflicts between the United States and other major economies led to lower exports and forced many companies to cut costs.

“Today’s job market report, more than any other report in recent months, has dispelled all remaining concerns about an imminent recession in the US economy,” said Gad Levanon, an economist at the Conference Board. “Consumers entered the pre-holiday season, having the opportunity and desire to spend money”

Positive data provided by the Ministry of Labor suggest that the Federal Reserve, whose meeting is scheduled for next week, is unlikely to reduce basic short-term rates in the near future. The Fed has cut rates three times this year, trying to boost economic growth.

House Speaker Nancy Pelosi warned that “despite some encouraging figures, the November job market report is not encouraging for farmers and hard-working families who are trying to stay afloat given the rising cost of living and growing uncertainty … We must take measures to increase the safety of older and family Americans in terms of health and finance. Next week, the House of Representatives will pass a revolutionary law on lowering the cost of drugs to finally deprive Americans of the need to pay more for drugs … compared to other countries, ”Pelosi said, promising that this will save the funds of patients, employers and taxpayers.

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