Unemployment Rate Drops to Lowest Since 2000

The U.S. Labor Department reported an unemployment rate of 3.8% in May, the lowest it has been since April 2000. Economists believe that there is potential for the employment rate to fall even further, as an average of 207,000 jobs per month have been added this year. Despite the expanding job market, wages have not increased to the extent that economists have expected, which could be explained by lower productivity and inflation rates. Employers are also shifting to hiring new entrants to the job market rather than higher-paid veteran workers, although economists predict that wages will eventually increase with tighter competition in the job market. (CNN Money, 6.1.18)