June Brings Uptick in Legal Employment

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A barista at Coeur d'Alene Coffee Company.

US employers kept up a brisk hiring pace in June by adding 213,000 jobs in a sign of confidence despite the start of a potentially punishing trade war with China.

They expect the unemployment rate to have held steady at 3.8%, the lowest level since 2000 and 1969 before then.

Employers in the United States are thought to have kept up their brisk pace of hiring in June, reflecting the durability of the second-longest USA economic expansion on record even in the face of a trade war with China.

Ahead of this morning's new jobs report, most projections pointed to totals of roughly 200,000 new jobs last month.

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 U.S. stock indexes were mostly higher July 6 after the jobs report was issued, keeping the market on track for a weekly gain after two weeks of losses.

Compared with a year earlier, overall employment was up 1.2 per cent following the creation of 214,900 jobs, which was driven by 284,100 new full-time positions.

President Donald Trump has imposed tariffs on a range of imported goods, including steel and aluminum, to protect domestic industries from what he says is unfair competition from foreign manufacturers.

Wage numbers again disappointed, with average hourly earnings up just 2.7% year over year, one-tenth of a percentage point below expectations. Pay increases remain the missing part.

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Job gains in June were nearly broad.

Economists were forecasting that June was 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 holding steady at an 18-year low of 3.8%, according to estimates compiled by Bloomberg.

These new entrants to the labor market have good reason to think their prospects of finding a job are good: Job growth is really strong.

The national jobless rate climbed 0.2% last month.

Economists had predicted 195,000 payroll gains amid a shortage of available workers to fill jobs. Through the first six months of 2017, the monthly average increment was also good, but it was a somewhat lower +184,000.

The job numbers for the month of June indicate US manufacturing continues to gain momentum.

The +54,000 jog upwards in "educational and health services" employment was comprised of "educational services", +19,000; "health care", +25,000; and "social assistance", +10,000.

"Retail" hiring, however, was down in the dumps, -22,000 jobs.

After revisions, job gains averaged 211,000 over the past three months, as the job market was approaching full employment. There are also growing fears of global disruptions as a trade fight escalates between the USA and China.

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