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US economy adds more jobs than expected in June

08 July 2018

The unemployment rate rose as an additional 601,000 Americans entered the labor force, meaning a strengthening labor market appears to have actually coaxed some workers back into the labor force.

On the same day that the Trump administration began imposing tariffs on $34 billion in Chinese imports and China retaliated with their own tariffs, the job gain showed that the 9-year old US economic expansion - the second-longest on record - remains on solid ground for the moment. Wages continued their modest rise, increasing 2.7 percent from the year before.

Donald said key indicators from the labour force data included the higher participation rate and still-strong wage gains. Normally, a tight labor market encourages employers to pay more to attract and retain workers.

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. Some economists project economic output rose at better than 4% annual pace in the second quarter for the first time since 2014.

Businesses added 213,000 jobs to their payrolls in June, another strong month of gains.

The report showed strength in the economy before a trade war started between the United States and China, which analysts warned could slow hiring, especially in the manufacturing sector.

The June jobs report has a lot of rosy details in it. But retailers cut 21,600 jobs last month, after boosting payrolls by 25,100 in May.

The broader USA economy appears sturdy. That belief has been one justification they've been using for being cautious on rate hikes. There were increases in professional and business services employment as well as leisure and hospitality. Housing starts have climbed 11 percent so far this year. The unemployment rate rose by 0.3 percentage points in June for college grads.

In May, the unemployment rate was 3.755% when extended out three decimal places, though this was officially rounded up to 3.8%, matching the lowest unemployment rate since April 2000.

"He pointed to minutes from the June Federal Open Market Committee, which indicate that some business leaders' "'plans for capital spending had been scaled back or postponed, '" which will likely also affect hiring. Any escalation in the conflict with China could disrupt hiring as companies grapple with higher import prices and diminished demand for their exports.

Trump has also spoken about slapping tariffs on imported cars, trucks and auto parts, which General Motors has warned could hurt the USA auto industry and drive up vehicle prices. Manufacturing led the way with an increase of 36,000 jobs, 12,000 of which were in autos.

US economy adds more jobs than expected in June