For the first time since 2000, the United States unemployment rate is at its lowest. The percentage of unemployment began a slow decrease in 2011, dropping by approximately one percent each year. A pattern has been studied of the decreasing unemployment percentages happening closer to the end of a year. Yet at the beginning of this year, the unemployment rate dropped nearly 0.3%. This is the lowest percentage in almost half a century.
What caused the drastic decrease of this year?
It decreased from 4.1% in January to 3.8% as of May. Over 400,000 helped to decrease the unemployment rate. The drop of unemployment percentage could be caused by the labor force contract signed in April. 220,000 plus jobs were created in the month of May of 2018. The highest recorded unemployment rate in this century, was in October of 2009. At the time of the highest unemployment is was recorded at 10.2%. However, unemployment has been on a steady decline since then.
What about other ethnicities?
Although the unemployment rates are low for caucasians, the unemployment rate for other ethnic groups is also decreasing. No official percentages have been studied, but for the majority of ethnic groups other than caucasians, it is still higher than the 3.8%. Here is more information.
Low unemployment rate, why are people still struggling to find jobs?
Majority of the reason people struggles to find jobs, is because of the lack of education or lack of previous work history. Someone is more likely to get hired on a job, if they have previous experience with a job in a similar field. Other who aren’t may often have issues finding a job due to unrealistic ideas. Those who are, may have trouble for not being the ‘average’ candidate for the job they are applying for.
The most positions for jobs was created by health care, retailers, and construction. This opened a door for a lot of unemployed people who either had or did not have experience.
Typically, employers are looking to hire young adults. Young adults are more able to do hard labor or have more energy to perform certain tasks. Dozens of companies have also spoken out about how pay rate would rise.
Majority of the young adults being hired are usually taking place of Veteran who have retired or moved on to a job they would have prefered and/or with better pay for their experience.
It is believed by economics that the pay rate will continue growing as the search for qualified employees continues.