Booming US jobs market lifts chance of rate rise

Booming US jobs market lifts chance of rate rise

Booming US jobs market lifts chance of rate rise

But the rate rose for an encouraging reason: More people felt it was a good time to begin looking for a job, though not all of them immediately found one. The unemployment rate nevertheless saw a small uptick. Average hourly earnings advanced 2.7 per cent from a year earlier, while the jobless rate increased to 4 per cent from 3.8 per cent, the first rise in nearly a year. And Goldman Sachs says the tight labor market tends to boost hiring in June as companies aggressively target students and graduates. "Clearly there are some sectors like trucking where wages are going up, but warehousing wages really collapsed and are only now just $12 or $13 an hour". That's consistent with other reports showing strength in factory activity.

The news in the household survey was mostly positive.

With a record 6.7 million unfilled jobs in April, economists are optimistic that wage growth will accelerate later this year.

The job tally, nonetheless, shows the sustained prowess of the economy, which has now maintained 9 years of expansion, the second longest period on record.

In June, white-collar professional firms filled 50,000 jobs last month to lead the way in hiring while manufacturers added 36,000 jobs. For instance, Hispanic unemployment is at a new low, according to the Bureau of Labor Statistics. "This is exactly what we wanted to see: marginalized Americans coming back into the labor force". More than 600,000 workers joined the economy last month, bringing the total labor force participation rate to 62.9 percent. It's "another strong month for jobs", CNN's Christine Romans told her viewers. Trump oversaw a steadily-declining unemployment rate which eventually reached its lowest level since 2000. The employment report would add to data such as consumer spending and trade that have suggested a sharp acceleration in economic growth in the second quarter.

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". Swonk said the industry "suffered a blow during the month as announced store closings finally kicked in". "If this doesn't stop, manufacturing will take a hit". US tariffs on $34 billion worth of Chinese goods are due to come into effect on Friday.

Major trade partners, including China, Canada, Mexico and the European Union, have retaliated with their own tariffs.

"Clients tell us all the time that they will be more cautious in this kind of environment".

Analysts have been puzzled by the consistency of the modest gain in wages irrespective of the growth.

In a separate report Friday, Statistics Canada said the country's merchandise trade deficit with the world widened in May to almost $2.8 billion.

New entrants, including blue-collar workers and teenagers, shouldn't have much trouble finding a job.

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