July labor report: 157000 new jobs; unemployment dips below 4%

July labor report: 157000 new jobs; unemployment dips below 4%

July labor report: 157000 new jobs; unemployment dips below 4%

Nonbank mortgage lenders and brokers employed 345,400 people during the month, according to the Bureau of Labor Statistics. "This is only the eighth time that the monthly unemployment rate has fallen below 4.0 per cent since 1970, and three of those months happened under President (Donald) Trump in 2018", US Labour Secretary Alexander Acosta said in a statement on the July jobs report. USA establishments added a net new 157,000 jobs, following the upwardly revised average gains in May and June of an outsized 258,000.

Hiring sizzled in July in business services, manufacturing and hospitality.

The Federal Reserve upgraded its view of the economy this week, substituting "strong" for "solid" in the statement that policymakers released after their latest meeting. There are about 6.6 million unfilled jobs in the nation.

US stock market futures dipped after the data while the dollar.DXY fell against a basket of currencies.

Average hourly earnings increased seven cents, or 0.3 percent, in July after gaining 0.1 percent in June.

One cloud on the horizon has been the Trump administration's trade fights with China, the European Union, Canada and Mexico.

Employers in the manufacturing sector extended a strong streak of job gains, suggesting that trade disputes hadn't yet weighed on hiring decisions in a major way.

On Friday, China's Commerce Ministry said a new set of proposed import tariffs on $60 billion worth of USA goods are rational and restrained and warned that it reserves the right of further countermeasures in the intensifying trade war.

Still, with unemployment at historically low levels and after a decade of steady job creation, employers across the United States complain of a widespread shortage of qualified labor and say they are struggling to fill open positions and being forced to offer higher compensation to attract and retain talent. There were declines in transport, utilities and financial payrolls last month. Despite many company executives complaining that they can not find workers to fill open positions, wage growth remains sluggish. Initial jobless claims were near a 50-year low in the week the BLS conducted its survey for the jobs report and haven't added up to more than 300,000 since March 2015.

The drop in government payrolls was concentrated in local governments, which shed 20,000 jobs.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc.

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