US labour market to remain tight in 2007

The US labour market will remain tight next year, the White House predicted Tuesday, raising hopes that ordinary Americans will start to feel more of the benefits of the country's economic expansion.

Issuing its twice-yearly economic forecasts, White House economic advisors said unemployment would average about 4.6 per cent in 2007, only a slight bit higher than the present 4.4 per cent.

Jobs growth would average about 129,000 a month – fewer than anticipated in June, but enough to keep unemployment low due to the falling number of people joining the labour market.