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June Sees Employment Rates Increase 213000

08 July 2018

"This is a good job-creation number, but on the other hand we see still continued soft wage growth", said Michael Feroli, chief USA economist at JPMorgan Chase.

Nonfarm payrolls rose by 213,000 jobs last month as manufacturers stepped up hiring, the Labor Department said on Friday.

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. It needs to create about 120,000 jobs per month to keep up with growth in the working-age population.

Acosta said, "We have more than half a million Americans saying "we want to work", and that is great news". That's consistent with other reports showing strength in factory activity.

Hanging over the labor market are President Trump's tariffs on goods from some of America's largest trading partners, along with retaliatory charges. Trump argues that the duties are necessary to protect domestic industries from what he says is unfair competition from foreign manufacturers. However, the official figures are yet to be released till later this month.

The overall hiring trend continues to accelerate, which is not surprising given that GDP growth is picking up and labour costs remain tame. After unemployment dropped to 3.8 percent in May, sparking worries of labor shortages, over 700,000 women joined the labor force in June, thus cooling the job market. 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.

Analysts have been puzzled by the consistency of the modest gain in wages irrespective of the growth. In May, the annual inflation rate rose to 2.8%, exceeding wage gains.

Donald said key indicators from the labour force data included the higher participation rate and still-strong wage gains. Businesses have scaled back or postponed investment plans because of trade uncertainty.

The percentage of unemployment attributable to voluntary quits fell to 12.4 percent, more than reversing a big jump reported in May. Prices for longer-dated U.S. Treasuries rose.

Minutes of the Fed's June 12-13 policy meeting published on Thursday were upbeat on the labor market.

The bottom line is that the buoyancy in June's USA labor market statistics will reaffirm the Federal Reserve's view that the economy is doing super-well at present and that further interest rate hikes will be justified.

This suggests that these 600,000 newly available workers can quickly find work if they have the right skills and that the unemployment rate will very swiftly fall back. This was more than the 190,000 forecast by economists.

Nonetheless, an escalating trade war poses a clear threat.

"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. "Unequivocally, this is a nightmare situation".

June was a record 93rd straight month in which private-sector employers hired more people than they fired or laid off. "Not only did payroll employment increase by 213,000 - evidence that employers are finding workers - but wage growth held steady at a disappointing 2.7 percent - evidence that employers are not having to raise wages to attract and retain workers". "Combined with additional jobs and steady hours, payrolls are up by 5 percent since June 2017". It is not a solicitation to make any exchange in commodities, securities or other financial instruments.

June Sees Employment Rates Increase 213000