The self-employment rate in the United States had reached a new 2017 peak of 9.90% in October after surpassing the previous peak set in September 2017.
The preliminary data for November of 9.80% suggests that the higher levels will be maintained but the November data is subject to adjustment and the Radly Bates Index is calculated post adjustments so we will need to wait 30 days for confirmation of the November result.
“The RBI for October confirmed the that the level of entrepreneurial activity is trending up. It’s not surprising. The availability of capital as well as entrepreneurial opportunity is at the best levels I have ever seen in my lifetime,” said Adam Radly, co-founder of the RBI.
In the meantime, the US job market appears to have rebounded from the devastating storms that struck Florida and Texas by adding 228,000 jobs in November as the unemployment rate remained at a 17-year low of 4.1%.
Hurricanes Harvey and Irma triggered some swings in job-creation and resulted a sharp slowdown in September but was followed by a strong rebound in October.
Paul Ashworth, chief US economist for Capital Economics, said the latest jobs numbers “all but guarantees” another rate hike by the Fed next week.
Economists had been expecting the economy to add 200,000 new jobs in November. ADP, the largest payrolls company in the United States said that private companies added 190,000 jobs in November.
“The labor market continues to grow at a solid pace,” said Ahu Yildirmaz, vice-president and co-head of the ADP Research Institute. “Notably, manufacturing added the most jobs the industry has seen all year. As the labor market continues to tighten and wages increase it will become increasingly difficult for employers to attract and retain skilled talent.”
Wage growth has been the only lagging indicator throughout the recovery since the 2008 financial crisis. In November the average hourly earnings for private sector employees increased 5¢ to $26.55. Wages have risen just 2.5% over 2017.
About Radly Bates Index
The founders of S7 Group, a private investment company based in California, Adam Radly and Bob Bates have launched a new index designed to track entrepreneurial activity in the United States.
The Radly Bates Index (“RBI”) measures the percentage of the active workforce that is self-employed. The Index will be updated monthly at the same time as the monthly jobs data is released and is based on data from the US Bureau Of Labor Statistics.
The Radly Bates Index (“RBI”) is part of the S7 Group, a private investment company that invests in small businesses directly and also raises capital for small businesses. More information about the RBI can be found here and more information about S7 Group can be found here. Adam Radly and Bob Bates can be available for comment through this email address: email@example.com.
Release ID: 280914