235,000 New Job Opportunities Created in the U.S.; Likelihood of Interest Rate Hike Strengthens

The U.S. Department of Labor announced on Friday, March 10, that the country managed to create 235,000 job opportunities in February, marking the first complete month of statistics during Donald Trump's presidency. According to the Associated Press, with the creation of these job opportunities and a favorable increase in wage levels throughout February, it is highly likely that the Federal Reserve will raise short-term interest rates next week. The government's report on the labor market indicates that the U.S. is in a very good position eight years after the end of the Great Recession. According to the U.S. Department of Labor statistics, the unemployment rate decreased from 4.8% to 4.7% in February. The number of job seekers has increased, and at the same time, the number of employed individuals and job seekers has reached its highest level in the past year. This increase in employment rates and wage levels, along with the public's consumption levels and confidence in the country's economic sector since the November elections, could boost investment and consumption, thereby accelerating economic growth. Americans are purchasing real estate at a stable growth rate, and activity in the manufacturing sectors is also increasing somewhat due to the improvement of foreign economies. This set of statistics could provide the necessary confidence for the Federal Reserve to continue the trend of raising interest rates. Another increase in next week's decision-making session would mark the third rate hike in the past 15 months, reflecting the economic situation of the U.S. since the end of the economic recession. Friday's report is the first to cover a full month of Donald Trump's presidency. During his campaign, Trump questioned the accuracy of government employment statistics and labeled the unemployment rate as 'fake.' He had stated in one of his speeches that the unemployment rate in the U.S. could reach as high as 42%. However, just minutes after the release of this report on Friday morning, he tweeted in praise of these statistics on his Twitter page. The Associated Press adds that a series of evidence indicates that the U.S. labor market is fundamentally healthy or nearly healthy. The average number of new hires was 237,000, compared to 187,000 in the previous year. The number of individuals receiving unemployment benefits for the first time, a rough indicator of layoffs, reached its lowest level in 44 years two weeks ago. Since the presidential election, confidence in the economic and investment environment of the country has increased, and many leaders in the economic community believe that under the influence of Trump's policies to reduce corporate taxes, eliminate regulations, and invest in national infrastructure, the U.S. economic growth rate will accelerate. The U.S. economy is also benefiting from stability and improvement in growth rates in other parts of the world. The economies of most European countries, China, and Japan have stabilized or are growing. In 2016, the average economic growth rate in the Eurozone was 1.7%, which is a significant improvement compared to previous years of record low or minimal growth. In the U.S., employers in some industries have extended their employees' contracts for longer periods, resulting in increased wages. According to another report released this week, the average hourly wage increased by about 3% in 2016, which is much higher than the 0.3% added annually based on inflation since 2007. At the beginning of 2017, the minimum wage was raised again in 19 states, a trend that likely contributed to the general wage increase in February. In January, despite higher mortgage rates, Americans purchased homes and real estate at a faster pace than before. This increase in demand has led to a 10.5% rise in housing construction over the past 12 months.