Published: Sun, July 08, 2018
Business | By Kate Woods

US payrolls rise 213,000; wage gains slow, unemployment up

US payrolls rise 213,000; wage gains slow, unemployment up

Canada received a dose of new jobs last month, maintained sturdy wage growth and saw more people searching for work - all seen as positives by experts who believe the path is clear for the central bank to raise interest rates next week.

The United States has now added jobs for 93 straight months, a record streak of hiring.

For the month of June, wages increased at a relatively solid annual rate of 2.7 percent.

But average, hourly earnings increased in both May and June, according to BLS numbers. In a bid to retain and attract workers, companies are steadily increasing wages.

"As the labor market tightens we should see more businesses raisings wages, offering training, and hiring workers from all corners of the labor market", she added.

More news: US service member killed in Afghanistan insider attack

Altogether, the data depicted a labour market that's not as tight as previously thought, easing any pressure on Federal Reserve policy makers to step up the pace of interest-rate hikes and potentially heartening employers who have had difficulty finding skilled workers.

The percentage of unemployment attributable to voluntary quits fell to 12.4 percent, more than reversing a big jump reported in May.

Trump has also spoken about slapping tariffs on imported cars, trucks and auto parts, which General Motors has warned could hurt the US auto industry and drive up vehicle prices. US stock index futures were little changed. The economy has added jobs every month for nearly eight years, the longest streak on record.

Yet another month of robust job creation showed that, despite complaints from companies nationwide about the worsening labour shortage, there remained untapped pockets of idled workers at last able to reenter the jobs market after almost a decade of economic recovery.

The U-6 or underemployment rate rose to 7.8 percent from 7.6 percent; the gauge includes part-time workers who'd prefer a full-time position and people who want a job but aren't actively looking.

More news: Former Sacramento King Tyler Honeycutt found dead after standoff with LAPD

Gross domestic product estimates for the April-June period are above a 4 percent annualized rate, double the 2.0 percent pace logged in the first quarter.

Hanging over the labour market are President Donald Trump's tariffs on goods from some of America's largest trading partners, along with retaliatory charges. The U.S. and China slapped tit-for-tat duties on $34 billion worth of the other's imports on Friday.

They expect the manufacturing sector to bear the brunt of the trade fights, through a slowdown in hiring and capital expenditure.

These figures are capable of creating confidence in the economy of the US. The factory jobs were concentrated in the automobile sector, which had seen a decline in employment in May after a fire at a parts supplier disrupted production. Construction payrolls likely increased after rising by 25,000 in May. There were increases in professional and business services employment as well as leisure and hospitality.

Total nonfarm payroll employment increased by 213,000 in June and has grown by 2.4 million over the last 12 months.

More news: By the Numbers: UFC 226

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.

Like this: