USA employers add 224,000 jobs

Adjust Comment Print

The jobs data came as investors are pricing high on possible immediate interest rate cut moves by the US central bank in order to spur growth.

The Labor Department reported early Friday that USA employers added a robust 224,000 jobs last month, far more than expected.

Though wage growth is expected to have picked up in June, the trend has slowed from late past year when wages were rising at their fastest rate in a decade.

Fed Chairman Jerome Powell's semi-annual testimony to the U.S. Congress on the economy next week could shed light on the near-term outlook for monetary policy.

A separate household survey released by BLS shows that the unemployment rate ticked up to 3.7 percent in June-a change that is not significant-making June the 16th consecutive month at or below 4 percent.

While the economy is celebrating 10 years of expansion, the longest in history, and its fundamentals remain healthy, there are signs that momentum is slowing as the stimulus from last year's massive tax cuts and more government spending fizzles. Since the President's election, the manufacturing industry has added more than 500,000 jobs. While the sector has historically been a source of good-paying jobs for workers without college degrees, this is becoming less true.

Economists have estimated that the government will report that employers added 164,000 jobs in June, according to data provider FactSet.

Eli Manning calls Jared Lorenzen a great teammate
He played in 43 games, throwing for 10,354 yards with 78 touchdowns and 41 interceptions. He claimed, about a year after he started, to have lost almost 100 pounds.

U.S. House of Representative Speaker Nancy Pelosi, a Democrat, welcomed the rebound in job growth, but said "hard-working Americans are still struggling under the Trump administration's disastrous special interest agenda".

Canada's main stock index fell in late-morning trading as lower commodity prices weighed on the key materials and energy sectors. The resilience of the USA jobs market is a key reason why we believe risks are skewed towards more modest Fed policy loosening relative to market expectations.

The sluggish pace of hiring in May had signalled that employers might have grown more cautious because of global economic weakness and, perhaps, some difficulty in finding enough qualified workers at the wages that companies are willing to pay. Low labour demand in manufacturing, wholesale trade, retail trade, mining and warehousing as well as slow wage growth are likely to continue.

Professional and business services: The industry added 51,000 jobs in June, following measly growth in May of 24,000.

But so far the extended run of historically low unemployment in recent years has yet to generate meaningful gains in inflation, leaving economists perplexed.

Overall, though, employers have been adding jobs faster than new workers are flowing into the economy.

Comments