In the United States unemployment fell to 5%, a rate never so low since April 2008: there are 271.000 new jobs, while the analysts expected an increase of only 183.000 units. In October, the American companies have created many more jobs than expected and with high-speed, much more than in the past. This paves the way for the Federal Reserve and increases the possibility of an increase in interest rates in December.

As reported by the American Department of Labor, the unemployment rate fell to 5%, in line with forecasts. The unemployment rate is within the threshold between 5 and 5,2% that the Federal Reserve considers a state of “full employment”. This data is very positive, especially as the data of previous months on new employees have been revised upwards, in August and September have created a total 12.000 jobs in more than initially estimated.

United States

Photo credit: Elvert Barnes / Foter.com / CC BY-SA

The president of the Chicago Federal Reserve Bank, Charles Evans, makes it clear how the road to a rise in short-term is now clear: “Strong employment growth is good news; however, it may push inflation to 2%, and now we need to focus on this one” he said.

The White House in Washington has created in 26 months over eight million jobs and the standards of living in United States have increased significantly. The White House, stressed that as unemployment fell to 5%, it returned to the levels of April 2008. It also points out that “Wage growth has also increased over the last 12 months” he said, “at the fastest pace since it started shooting”. “But we can do much more” adds the White House, “by increasing the mininum wage and investment in infrastructure. And by implementing the free trade agreements such as the Trans-Pacific Partnership”.

United States

Photo credit: Glyn Lowe Photoworks. / Foter.com / CC BY

Falling unemployment in the United States is good news for Europe

The improvements in the United States’ economy are, therefore, reflecting on the living standards of the  population. Lowering the unemployment rate is accelerating the consumption again in the territory of the United States, and most likely this wave of improvement will soon reach Europe as well. Some are skeptical, but seeing unemployment fall appeases the different economies that observe closely the development of America and the political choices of the White House.

Europe, however, is in a completely different situation: there unemployment is still a painful wound in many countries. The plague of unemployment is reflected in a drastic reduction in income and many young people continue to live with their parents, in their families of origin. This has been a remarkable problem in recent times in mediterranean Europe, and especially in Italy

To date, reading the latest Eurostat figures, the unemployment rate in age group that includes those under 25 is still particularly high in Greece (51,8% in May 2015), Spain (48,6%) and Croatia (43,1% in second quarter 2015). In Italy the percentual is about 40,5%.

In contrast, the European countries with the lowest rate of youth unemployment as in July 2015 are Germany (7%), Malta (8,7%) and Estonia (9,5% in June 2015). Followed by Austria (10,8%), the Netherlands (11,3%), Denmark (11,7%, Czech Republic (13,4%) and Slovenia (16,7% in June 2015). In general, compared with July 2014, youth unemployment stands at 20,4% in the EU-28 and 21,9% in the Eurozone, 22 and 23,8%. recorderd last year.

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Stefano Boscolo

Stefano Boscolo

Stefano Boscolo was born in Turin in July 1986. He graduated in Literature and with honours cum laude in Comparative Modern Culture at the University of Turin. He is the author of several publications and of a dissertation on "The image of Christ, Marian devotion and the meaning of salvation in the poetry of Karol Wojtyla". He is completing a master degree in Philology and Literature of Antiquity. He is auditor-student at the Theological Faculty of Northern Italy - Turin.