4 Mutual Funds To Buy On April's 18-Year Low Jobless Rate
Zacks Investment Research | May 10, 2018 09:28PM ET
The unemployment rate declined in April and settled at its lowest level since December 2000, reflecting tighter labor market conditions. Also, the U.S. economy experienced steady jobs growth last month, comparatively better than March’s job additions. A better-than-expected jobs report indicated a rosier economy.
Professional and business services led job gains, followed by healthcare, manufacturing and mining. In this context, we have focused on those mutual funds that have significant exposure to these sectors. But before that, let’s take a peek into the data.
Unemployment Falls to Near 18-Year Low
The unemployment rate declined from 4.1% in March to 3.9% in April, the lowest level in nearly 18 years. This pace is also marginally higher than the Federal Reserve’s targeted rate of 3.8%. This is the first time in six months that the unemployment rate has undergone a decline.
Incidentally, jobless rate has fallen below 4% few and far between in the last 70 years. This occurred during the Korean War, Vietnam War and dotcom boom in the late sixties, early seventies and in 2000, respectively. In contrast, unemployment had hit 10% in October 2009 when the U.S. economy was still recovering from the Great Recession.
A section of economists feel that the decline in unemployment rate was partially attributable to a marginal fall in the labor participation rate, which declined from 62.9% to 62.8%. However, most economists expect the unemployment rate to undergo further declines. Currently, the labor market is increasingly tightening and the Fed has projected a jobless rate of 3.6% for 2019. (Read More:Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.