US Unemployment Rate at 4.1 Percent in December

The US unemployment rate remained at a 30-year low of 4.1 percent in December as 315,000 people found jobs, the US Labor Department reported on January 7.

The report said that December's jobless rate matched November's 4.1 percent, the lowest since a 3.9 percent rate in January 1970.

For all of 1999, the unemployment rate averaged 4.2 percent, the lowest since 3.5 percent in 1969 during the Vietnam War. In 1998, the jobless rate averaged 4.5 percent.

Last month, employers added 315,000 jobs to their payrolls. Workers found jobs at construction companies, engineering firms, health care centers and retail stores. But the manufacturing sector continued to lose jobs. For all of the year, about 2.7 million people found jobs, compared with 2.9 million in 1998.

Meanwhile, average hourly earnings grew by 0.4 percent to 13.46dollars in December. It was the largest gain since September. In November, wages rose by a tiny 0.1 percent.

Analysts said that although wage and job growth are good developments for workers, the Federal Reserve would worry that the combination could produce inflation down the road. They believed the Fed could boost rates again as early as its February meeting, given continuing strong economic growth.


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