June Sees Employment Rates Increase 213000

Donald Trump

The American Economy Added 213,000 Jobs in June The Associated Press 6 Jul 2018

After hitting an 18-year low of 3.8% in May, the unemployment rate unexpectedly ticked up to 4% last month, as the economy added a surprisingly strong 213,000 jobs, according to the U.S. Labor Department.

Revisions to prior reports added a total of 37,000 jobs to payrolls in the previous two months, according to the figures, resulting in a three-month average of 211,000.

Average hourly earnings increased 5 cents to $26.98, keeping the annual increase unchanged at 2.7 percent.

The increase is above the gains required for the accommodation of the population growth and about 20,000 more compared to last year's average during the same period.

This means that the job market has tipped in the favor of workers, rather than employers.

The mixed signals of rising joblessness amid continued hiring could strike a flat note at the White House as President Donald Trump has repeatedly taken credit for the historic low levels of unemployment.

"Overall, this "not too hot, not too cold" report supports our call for four Fed rate hikes in total this year", Gregory Daco, head of USA macroeconomics at Oxford Economics in NY, said in a note. Wages missed forecasts, with the relatively tepid pace remaining a puzzle for economists.

The rise in unemployment isn't as bad as it seems, said Mark Hamrick, a senior economic analyst for Bankrate.com.

Manufacturing and health care added the most jobs in June - hospitals added 11,000 jobs over the course of the month - while the retail industry lost 22,000 positions, a disappointing turn from what had been an encouraging boost in May.

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"More Americans look for jobs when they are seen as easier to find, another sign the labor market is very healthy", MarketWatch noted.

In spite of the strong job gains and widely voiced complaints from employers about difficulties in finding workers, wage growth does not appear to be accelerating.

The number of employed people in the workforce rose by 102,000, while the number of unemployed jumped by 499,000, suggesting more people entered the labour force and actively sought jobs. These women weren't previously counted as unemployed due to their not actively looking for work.

America's labour market boomed again last month, strengthening the case for the Federal Reserve to raise interest rates twice more this year. White unemployment remained stable at 3.5 percent.

At the same time, the latest report "probably places less pressure on the Fed to feel like they're behind the curve", Feroli said.

The labor force participation rate also went up by 0.2 percent to the current 62.9 percent after 601,000 joined the civilian labor force.

Higher imports in May of aircraft, other transportation equipment and energy products fuelled most of the increase.

Read the full report at CNS News.

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