USA unemployment rate rises unexpectedly to 4.0% | 6 July 2018


USA unemployment rate rises unexpectedly to 4.0% | 6 July 2018

Buoyant job creation: The U.S. economy continues to be one of the most dynamic job creators in the world, adding 213,000 jobs in June (the median estimate of analysts surveyed by Bloomberg called for a gain of 195,000). 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.

The employment-population ratio, another broad measure of labor- market health, was unchanged at 60.4 percent. The EPOP for prime-age workers (ages 25 to 54) edged up to 79.3 percent, tying the high for the recovery reached in February.

Faster wage growth would also indicate that inflation is building in the economy, which hasn't been the case even though unemployment is this low. The increase is the same for both overall employment and production and nonsupervisory workers. Construction payrolls increased by 13,000 after rising by 29,000 jobs in May.

With a record 6.7 million unfilled jobs in April, economists are optimistic that wage growth will accelerate later this year.

Altogether, 285,000 new jobs have been added in the manufacturing sector in the past year.

In June, white-collar professional firms filled 50,000 jobs last month to lead the way in hiring while manufacturers added 36,000 jobs.

DePratto stressed he didn't see anything in the jobs report to deter Poloz from hiking the rate next week. This may be due to erratic seasonal factors.

Automakers added 12,000 jobs in June, but adverse trade developments could deflate the gain.

The public sector gained 11,800 jobs and the private sector lost 2,000.

"It's hard to fathom how the robust manufacturing conditions will be sustained", said Joe Brusuelas, chief economist at RSM in NY.

Black unemployment rose to 6.5 percent from a record low of 5.9 percent; the Hispanic rate fell to a record low of 4.6 percent.

This may seem freaky on a number of levels - the person might have stopped looking because she feels her search is hopeless, or because he no longer wants a job. It is now back to prerecession lows measured as a share of employment. A year earlier, the unemployment rate was 4.3 percent, with 7 million people unemployed. And the five worst states, while geographically distant from each other, all shared brief windows when workers can receive unemployment that are well below the 26-week national average. It is now unchanged for the past year, half a percentage point above its prerecession level.

New entrants, including blue-collar workers and teenagers, shouldn't have much trouble finding a job.

Tapping into the potential pool of those who have given up looking for work, the job market seems to still have room for improvement.

Canada added 9,100 full-time jobs in June and 22,700 part-time positions, while work in the less-desirable category of self-employment rose by 22,000.

Truthout doesn't take corporate money.



© 2015 Leader Call. All Rights reserved.