U.S. adds a solid 213,000 jobs as jobless rate rises

08 July, 2018, 16:53 | Author: Eric Barnett
  • The U.S. economy added 213,000 jobs in June, as unemployment rose to 4 percent

The latest jobs report comes less than a week before the Bank of Canada makes its next interest-rate decision.

The ranks of unemployed people seeking jobs jumped by 499,000 in June, which caused the unemployment rate to rise from its previous 18 year-low.

Economists had forecast that June would be another strong month for the US labor market, with nonfarm payrolls expected to have grown by 195,000 during the month with the unemployment rate expected to hold steady at an 18-year low of 3.8%, according to estimates compiled by Bloomberg. Pay increases remain the missing part. Neither the BLS report nor any of the establishment press outlets have sought to provide any explanation for this trend, which runs contrary to the commonly-accepted capitalist economic principle that a tighter labor market will result in higher wages as employers compete against one another for workers. That risks weighing on economic growth and the pace of hiring and investment.

Along with the 213,000 jobs added in June, the jobs numbers for April and May were also revised to include 37,000 additional new hires across those months, according to data released Friday by the Bureau of Labor Statistics. President Donald Trump's tax cuts have provided a dose of stimulus this year, but the benefits have been tilted significantly toward wealthy individuals and corporations. The concern is that a tit-for-tat escalation of tariffs will be increasingly damaging for activity, hurting sentiment and leading to a slower pace of growth in capital expenditure and job creation. "The impacts of the trade war are going to be more delayed and spread over time". That's an increase in total employment of a quarter of a million jobs. This was consistent with sectoral data pointing to a more dynamic manufacturing sector among others.

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.

Workers who haven't gone to college accounted for all of this month's net increase in the labor force and employment.

"The tariffs jumble things about what we should expect to see in the next few months", said Cathy Barrera, chief economist at ZipRecruiter, to the AP. This uptick in people joining the workforce - there were 601,000 new entrants to the labor force in June - pushed up the unemployment rate.

Economists had forecast that employers added 195,000 payrolls last month, according to the median estimate compiled by Bloomberg.

Michael Gapen, chief U.S. economist at Barclays Plc in NY and a former Fed official, said that the boost in workers coming into the labour market bodes well for pushing down the unemployment rate again.



Trump Narrows SCOTUS Choices To Three
He also prioritizes academic credentials and likes to have a breadth of legal opinions to gauge how the judge applies the law. Some conservatives have pointed to Kethledge as a potential justice in the mold of Gorsuch.

Gareth Southgate: Young England side 'hungry' to go as far as possible
The defender watched England from the stands at Euro 2016, and he admitted that he has not yet fully come to terms with everything he has achieved in the last two years.

Hales leads England to dramatic win over India
Meanwhile, all-rounder, Ben Stokes has also found his place back in the team for the final T20I. Eoin Morgan and Virat Kohli, captain of England and India respectively.

Putting woes: But Rory McIlroy still in the mix at Irish Open
I did that at Augusta and felt I learned from it and, hopefully, I can put myself in similar positions at the Open and the USPGA. The Kiwi needs a good result to secure a starting slot at next month's Open at Carnoustie. "The US Open was the US Open".

Pompeo brushes off North Korean 'gangster' claim
Trump and Kim pledged at their June 12 summit meeting in Singapore to move toward denuclearisation of the Korean peninsula . She said the two sides had also discussed the return of the remains of American troops killed during the Korean War.

Tuberculosis spill prompts mass evacuation at Johns Hopkins
This situation was leaked to the press and a thorough investigation was launched into area research facilities. The sample was "equivalent to a few drops", according to Dr.

North Korea slams talks with Secretary of State Pompeo as 'regrettable'
And he said progress had been made towards agreeing "the modalities" of North Korea's destruction of a missile facility. She said the two sides had also discussed the return of the remains of American troops killed during the Korean War.

Lewis Hamilton expects 'serious fight' with Ferrari
Sirotkin managed to limp out of the gravel, but could manage only the slowest time with both Williams cars to start at the back. Asked if he thought he could take pole, Vettel said: "To be honest this morning no, I wasn't sure if I could do qualifying".

England sink Sweden to clinch World Cup semi-final berth
England fans lose all control. "We looked composed", England captain Harry Kane said after the Saturday match (NZT Sunday). It was a sign of what was to come - direct balls, long throws, pressing - but those basic tactics didn't trouble England .

WARREN EXPLODES: Sen. Warren Says Trump Ripping Babies 'From their Mamas'
As he has done repeatedly before, Trump mocked her claims of Native American ancestry with the derisive label of "Pocahontas". At a rally in Montana , Mr Trump mocked those who had called on him to apologise for comments made about Warren.