US Payrolls Rise 213000; Wage Gains Slow, Unemployment Up

The Bureau of Labor Statistics reported the economy added 213,000 jobs in June. If, though, the unemployment rate reached 3.7 percent or less in June, it would mark its lowest level since December 1969, when it was 3.5 percent. Continue to look for even faster wage growth. "There were some people who weren't participating in the labor force who are now being encouraged to return, so I'm not concerned about the uptick in unemployment", said Catherine Barrera, chief economist of the online job site ZipRecruiter. The factory jobs were concentrated in the automobile industry, which had seen a decline in employment in May after a fire at a major parts supplier disrupted production.

That said, the labor market isn't flawless.

The report showed little, if any, evidence of tariff-related weakness in the economy, especially with continued strength in goods-producing jobs. The drop in yields is making the U.S. Dollar a less attractive investment. Unemployment figures don't include jobless people not in the labor force, or those who haven't sought a job over the previous four weeks.

Altogether, 285,000 new jobs have been added in the manufacturing sector in the past year. Traders said the report was more encouraging than discouraging in the wake of an escalating trade war between the US and China.

Yet another month of robust job creation showed that, despite nationwide complaints of worsening labor shortage, there remained untapped pockets of idled workers at last able to reenter the jobs market after a decade of economic recovery.

Service providers boosted payrolls by 149,000, led by a 54,000 gain in education and health services, and 50,000 in professional and business services.

Gross domestic product estimates for the April-June period are above a 4 percent annualized rate, double the 2.0 percent pace logged in the first quarter. Wages increased by 0.2 percent from May to June of this year, and 2.7 percent since June 2017.

America's labour market boomed again last month, strengthening the case for the Federal Reserve to raise interest rates twice more this year.

Last month, President Trump broke with long-standing practice and tweeted about the jobs report prior to its official 8:30 a.m. release, prompting markets to move.

Specifically, support activities for mining increased by 4,300 for the month of June while jobs in oil and gas extraction decreased by just 200.

Donald said key indicators from the labour force data included the higher participation rate and still-strong wage gains. That kept the annual increase in average hourly earnings at 2.7%.

This suggests that these 600,000 newly available workers can quickly find work if they have the right skills and that the unemployment rate will very swiftly fall back.

Overall, U.S. employers added 213,000 jobs in June.

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