Employment growth was strong for a second consecutive month in June as the economy added 213,000 jobs despite worker shortages and mounting USA trade tensions.
Economists have estimated that 195,000 jobs were added last month and that the unemployment rate remained at an 18-year low of 3.8 per cent, according to data provider FactSet. "Over the year, average hourly earnings have increased by 72 cents, or 2.7 percent", BLS said on Friday.
Health care added 25,200 jobs, nearly exactly in line with its average over the a year ago. "Aside from the immediate job market impacts, the trade disputes risk raising prices for consumers hurting their purchasing power, which then reinforces the dampening impact on the job market", Hamrick added. "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". Manufacturers added another 36,000 jobs last month on top of the 19,000 created in May. Wages missed forecasts, with the relatively tepid pace remaining a puzzle for economists.
"While the Hispanic-Latino unemployment rate had been as low as 4.8% in five months, four of those months were during the administration of President Donald Trump; the lone exception being October of 2006", writes CNS News. And as is the case in most months, professional and business services as well as education and health services were the sectors that saw the largest increase in employment, with 50,000 and 54,000 jobs added in these sectors respectively.More news: Japan torrential rain in pictures: Aerial pictures show horror of Japan flooding
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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.
The surge in construction wages lost a little momentum in June. But the rate rose for an encouraging reason: More people felt it was a good time to begin looking for a job, though not all of them immediately found one. Over the past year, average monthly payroll gains have hovered around 200,000, and hiring has been running ahead of growth in the labor force. Most economists say they still think the low unemployment rate will eventually force more employers to offer higher pay in order to fill jobs. A year earlier, the unemployment rate was 4.3 percent, with 7 million people unemployed.
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. "That together with rising inflation should keep the Fed on track to raise interest rates two more times this year". Before joining The Washington Post, she was a senior economics reporter at CNN and a columnist and deputy editor at the Patriot-News in Harrisburg, Pa.
"This is a good job-creation number, but on the other hand we see still continued soft wage growth", said Michael Feroli, chief USA economist at JPMorgan Chase.