USA adds a solid 213000 jobs; unemployment up to 4 percent


The job numbers for the month of June indicate USA manufacturing continues to gain momentum. The reason for the rise in the unemployment rate was "a stampede of people back into the labour force", he said.

In spite of the tightening labor market, however, wage growth remains anemic.

Regina, Saskatchewan has a higher unemployment rate than Windsor, but may actually have more people working.

"It's not your father's labor market anymore", said Diane Swonk, chief economist at Grant Thornton. 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. The agency's Bureau of Labor Statistics issued its monthly look at the employment situation in the USA, showing a rebound in the legal services sector after more tepid results in May.

Job growth this year has been faster than in 2017.

In another sign of vigorous demand for labor, the results for April and May were revised higher by a total of 37,000 new jobs, bringing the average for the past three months to 211,000. At more than 1.141 million people employed in the industry in June, the legal jobs figures edged outside of a range that has prevailed since December 2016.

The economy continues to show many signs of strength despite the brewing trade war.

While the sunny outlook led Federal Reserve officials last month to boost the number of interest-rate hikes they expect in 2018, an intensifying trade war threatens to sap economic momentum, and a shrinking pool of qualified workers may slow the pace of employment gains.

Looking further into the report, the unemployment rate rose to 4 percent after holding steady at 3.8 percent, its lowest level since 1969.

BNN Bloomberg Commentator looks under the hood of the latest Canadian jobs report and explains how the underlying data reveals a less rosy picture for the economy than the headline numbers. While 12.4 percent is still high for this recovery, it is well below the rates of more than 14 percent seen the last time the unemployment rate was this low in 1999 and 2000. Average hourly earnings increased by 0.2% month-on-month and 2.7% year-on-year, weaker than economists had forecast. Professional and business services, manufacturing, health care, construction, and mining all added jobs in June. 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.

"Overall the report is good news insofar as it suggests the economy still has some capacity to grow at an above-trend pace without generating much inflationary pressure", said Michael Feroli, an economist at JPMorgan in NY.



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