Job growth remains steady, but jobless rate ticks higher

Donald Trump

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

With these revisions, employment gains in April and May combined were 37,000 more than previously reported. The economy needs to create roughly 120,000 jobs per month to keep up with growth in the working-age population.

Economists were forecasting that June was another strong month for the USA labor market, with nonfarm payrolls expected to have grown by 195,000 during the month with the unemployment rate holding steady at an 18-year low of 3.8%, according to estimates compiled by Bloomberg.

Hassett pointed to the increase in labor force participation for African American women and Hispanic men and women as an encouraging sign that people are being drawn back to work.

Jim O'Sullivan, chief USA economist at High Frequency Economics, said gains have averaged 215,000 month so far this year, up from 182,000 "more than strong enough to keep the unemployment rate trending down over time".

That could boost the annual increase in average hourly earnings to as high as 2.9 percent, the largest gain since June 2009, from 2.7 percent in May. With 93 straight months of job growth - a historical record - many employers have said they're feeling pressure to raise wages.

Remaining slack in the job market could be keeping a lid on wage growth, said Cathy Barerra, chief economist at ZipRecruiter.

The United States has increased jobs monthly for more than seven years, but some analysts suggest that the escalating trade disputes between the USA and its allies could threaten growth. Economists surveyed by Bloomberg News had projected the unemployment rate would remain unchanged at 5.8 per cent, which matched the lowest on record. However, fears of a trade war with other countries, especially China, have many anxious the economy could slow down or shrink in the months ahead.

Read the full report at CNS News.

Major trade partners, including China, Canada, Mexico and the European Union, have retaliated with their own tariffs.

USA economist at UniCredit Research in NY. The concern is that a tit-for-tat escalation of tariffs will be increasingly damaging for activity, hurting sentiment and leading to a slower pace of growth in capital expenditure and job creation. But that +213,000 compares June's level of total jobs with a revised figure for May. Construction payrolls likely increased after rising by 25,000 in May.

The June jobs report showed employers added 213,000 nonfarm payrolls, more than economists had expected. The factory jobs were concentrated in the automobile sector, which had seen a decline in employment in May after a fire at a parts supplier disrupted production.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. This publication has been prepared by ING exclusively for information purposes without regard to any particular user's investment objectives, financial situation, or means.

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