US Adds 213000 Jobs In June, But Unemployment Rate Inches Up

Andrew Cummings
July 8, 2018

- US job growth increased more than expected in June as manufacturers stepped up hiring, but steady wage gains pointed to moderate inflation pressures that should keep the Federal Reserve on a path of gradual interest rate increases.

Think about it. Suddenly, because they feel confident that a job may exist for them, 601,000 people got off the couch and looked for work. BLS reported that 1,141,400 people were employed in legal services in June, a figure that includes lawyers, paralegals, legal secretaries and other law-related professions.

The lack of wage growth is disappointing, but still higher than the rate of inflation, said Douglas Holtz-Eakin, president of the American Action Forum.

The way Washington calculates the unemployment rate is a little odd, to say the least. A 2016 study by researchers at Princeton University and Harvard University, for example, found that 95 percent of job gains since 2008 were temporary, part-time, or contract jobs, which large corporations have used to avoid providing benefits and decent pay to ever-larger numbers of employees.

The report underscores a familiar refrain: There are lots of jobs being created, but not enough people to fill them.

Buoyant job creation: The U.S. economy continues to be one of the most dynamic job creators in the world, adding 213,000 jobs in June (the median estimate of analysts surveyed by Bloomberg called for a gain of 195,000).

The broader US economy appears to be on sturdy ground.

Expressed another way, the monthly average jobs jump in first-half of 2018 has been +17% compared with the first-half of 2017.

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.

Most economists agreed the uptick in the unemployment rate is the result of volatile figures used in the calculations.

Although average hourly wages grew 2.7% in June from a year ago, they didn't change much from May and came in below economists' expectations. Prices for U.S. Treasuries rose.

Despite the small bump in unemployment, a decade of steady job growth following the Great Recession has pushed unemployment to the lowest level in decades.

Manufacturing added 36,000 jobs, the most since December. The government sector added 11,000 jobs, mostly due to an increase of 13,000 jobs in local government.

This follows a survey in June, which showed record-high optimism among USA manufacturers.

The EPOP for Hispanics rose 0.4 percentage points to 63.4 percent, a new high for the recovery, while their unemployment rate fell to 4.6 percent, the lowest on record.

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