A mixed report on the US employment

The report on the US employment in October has been released and there is some positive news and some negative news.

The positive news is that the US wage growth accelerated in October at the fastest rate since 2009 and the unemployment rate stayed as low as 4.9%, which could be considered as a "zero unemployment rate", because it is the companies' interest to leave some people unemployed in the labour market in order to maintain their employees' incentives and it is also the current employees' interest to keep their wages higher than when it is at the market equilibrium.

The negative news is that the number of people who first time register for unemployment benefit increased in October. It could imply an increase in the youth unemployment and furthermore it may imply a structural change in the US economy that often a structural change can lead to an increase in the structural unemployment.

When we combine the good news and the bad news together, I come to this conclusion that there is a structural shifting taking place in the US economy. The labour market is able to supply labours with the required skills for the new industries or sectors of the economy; however, the workers from the being replaced sector do not have the matched skills to look for new jobs in the new sectors, this can cause a difficult problem in the US economy.