United States jobs growth stronger than expected

Full-time employment was up by 9,100 By sector, employment in goods producing industries was up by 46,600, the highest since April 2012, led by construction and manufacturing Service producing industries lost 14,700 jobs during the month Self-employment was up by 22,000, with employment in the public sector rising by 11,800.

The monthly Labor Department report also revised up figures for April and May, reporting that 37,000 more jobs were created in these months than previously estimated.

The US economy needs to create roughly 120,000 jobs per month to keep up with growth in the working-age population.

However, the unemployment rate rose surprisingly to 4%, while the average expectations of the financial markets were stabilizing at its 18-year low of 3.8% in May (the lowest unemployment rate in the USA since April 2000, as lower levels were recorded for the last time in 1969).

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.

"Overall, this "not too hot, not too cold" report supports our call for four Fed rate hikes in total this year", Gregory Daco, head of USA macroeconomics at Oxford Economics in NY, said in a note.

The U.S. Labor Department says for the first time in recorded history there is a greater number of job openings than people who are unemployed.

In the past three months, the United States has increased 211,000 jobs monthly on average. Average hourly earnings advanced 2.7 per cent from a year earlier, while the jobless rate increased to 4 per cent from 3.8 per cent, the first rise in nearly a year. Hourly wages for private, non-farm jobs in the US increased by five cents to $26.98 per hour, according to the preliminary BLS data issued Friday.

In spite of the strong job gains and widely voiced complaints from employers about difficulties in finding workers, wage growth does not appear to be accelerating.

For decades, the country had suffered from a shrinking labor force as many Americans, especially men, gave up on looking for jobs.

The dollar extended losses against the euro and the yen after the employment report.

Trump has also spoken about slapping tariffs on imported cars, trucks and auto parts, which General Motors has warned could hurt the US auto industry and drive up vehicle prices.

On the negative side, the unemployment rate for black workers increased 0.6 percentage points to 6.5 percent from the record low hit in May.

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).

"We are going to increase the frustration of America's families", Pelosi said, "because they'll be saying: Hip, hip hooray, unemployment is down!"

The unemployment rate rose in June, but that may not be a bad thing. 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.

It also explains in part why the Federal Reserve is now signaling two rate hikes during the second half of the year.

Economists expect the manufacturing sector to bear the brunt of the tit-for-tat tariffs, through a slowdown in hiring and capital expenditure.

The broader USA economy appears to be on sturdy ground. There were increases in professional and business services employment as well as leisure and hospitality.

Vanessa Coleman

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