USA added 213,000 jobs in June; unemployment rose to 4 pct

Donald Trump

In its report Friday, the government revised up its estimate of job growth in May and April by a combined 37,000.

In June, the United States unemployment rate unexpectedly rose to 4% from 3.8% the month before, coming off an 18-year low.

The US economy needs to create roughly 120,000 jobs per month to keep up with growth in the working-age population. Additionally, the Trump administration has drawn attention to the record-low of African American unemployment, even as it remained higher than the overall rate at 5.9%.

The details across industries showed continued strength in goods-producing jobs: Manufacturing added 36,000 to payrolls, the best month since December, including a 12,000 increase in the auto industry, the most since August. Construction payrolls likely increased after rising by 25,000 in May. This extra labour supply has seemingly helped keep wage growth in check. After revisions, job gains have averaged 211,000 per month over the past three months.

Yet another month of robust job creation showed that, despite complaints from companies nationwide about the worsening labour shortage, there remained untapped pockets of idled workers at last able to reenter the jobs market after almost a decade of economic recovery. "Over the year, average hourly earnings have increased by 72 cents, or 2.7 percent", BLS said on Friday.

Acosta said, "We have more than half a million Americans saying "we want to work", and that is great news".

"The tariffs jumble things about what we should expect to see in the next few months", said Cathy Barrera, chief economist at ZipRecruiter, the online jobs marketplace.

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. Many experts still predict the unemployment rate will fall further by the end of the year to the lowest level since 1969.

Although wages grew 2.7% in June from a year ago, they didn't change much from May and came in below economists' expectations. Also, President Donald Trump has slapped tariffs on imports that have provoked tit-for-tat countermeasures by other countries in an escalating trade war that's starting to unnerve US corporations.

The unemployment rate increased because more people were looking for jobs; the labor-force participation rate rose to 62.9% from 62.7%.

But there is a matter about which the Chairman of the Fed, Jerome Powell, is beginning to express concern, the threat from an escalating tariff "war".

Major trade partners, including China, Canada, Mexico and the European Union, have retaliated with their own tariffs.

"I think that we're seeing the front loading of the fiscal-stimulus impact, which we expected to boost growth this year", Julia Coronado, president of MacroPolicy Perspectives LLC in NY, said on Bloomberg Television. Meanwhile, yesterday's minutes of the June FOMC meeting reported "some" contacts said, "plans for capital spending had been scaled back or postponed as a result of uncertainty over trade policy".

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