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Labor Department Announces an Increase in US Jobs By 213,000

09 July 2018
Labor Department Announces an Increase in US Jobs By 213,000

The economy has now been adding jobs for almost eight years - its longest streak on record.The considered at near full employment, and the biggest challenge in the job market is the lack of available workers - a record 6.7 million jobs remain unfilled.

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

Still, Satyam Panday of S&P Global Ratings summarized the view of economists that "Despite simmering trade tensions, hiring in the U.S. continues to stay strong".

The June jobs report marks the longest consecutive, positive monthly job expansion on record, at 93 months.

"We are going to increase the frustration of America's families", Pelosi said, "because they'll be saying: Hip, hip hooray, unemployment is down!"

"It's a good thing".

Sure, the unemployment rate rose, but that's because more people were drawn into the worker-friendly labor market, not because payroll gains were weak.

"More Americans look for jobs when they are seen as easier to find, another sign the labor market is very healthy", MarketWatch noted. There are more openings right now than unemployed workers, leading businesses to expand hiring to historically disadvantaged groups. In fact, the proportion of firms with current vacancies that are unable to fill is at an all-time high with 21% of firms saying finding qualified labour is the biggest problem their business is facing.

The Bureau of Labor Statistics is set to release the June jobs report at 8:30 a.m. ET.

Wage growth remained sluggish, however, and was effectively erased by inflation: average hourly earnings rose just 0.2 percent to $26.98, putting wages up 2.7 percent over the same month a year ago, the same as the 2.7 percent rise in the Consumer Price Index. Normally, a tight labor market encourages employers to pay more to attract and retain workers.

Strong jobs growth continues at a time when the economy is growing 4%, and inflation is about to break 3%. The department also boosted its estimate for April job growth up to 175,000 - up from an earlier assessment of 159,000.

The report also shows that the share of workers who have multiple jobs remained stable over the previous year at 4.8 percent.

Altogether, 285,000 new jobs have been added in the manufacturing sector in the past year. Manufacturers added another 36,000 jobs last month on top of the 19,000 created in May.

It also explains in part why the Federal Reserve is now signaling two rate hikes during the second half of the year.

"Contacts expressed concern about the possible adverse effects of tariffs and other proposed trade restrictions", the Fed said in minutes published Thursday.

The economy also faces a substantial threat from the trade tension with China and from other trade disputes with US allies, including Canada and Europe.