Monday, 15 October, 2018

US economy adds more jobs than expected in June

Donald Trump The American Economy Added 213,000 Jobs in June The Associated Press 6 Jul 2018
Nellie Chapman | 08 July, 2018, 22:27

Restaurants added 16,400 jobs in June, under the average of 18,400 over the year.

"The solid 213,000 gain in non-farm payrolls in June, which followed an even stronger 244,000 rise in May, illustrates that labor market conditions remain unusually strong", said Andrew Hunter, U.S. economist at Capital Economics. The concern is that a tit-for-tat escalation of tariffs will be increasingly damaging for activity, hurting sentiment and leading to a slower pace of growth in capital expenditure and job creation.

The gain in USA total employment through the first half of this year has been 1.3 million jobs. At more than 1.141 million people employed in the industry in June, the legal jobs figures edged outside of a range that has prevailed since December 2016. That said, this year's tally is still short of the totals from the first six months of 2014 and 2015.

Jim O'Sullivan, chief United States economist at High Frequency Economics, said gains have averaged 215,000 month so far this year, up from 182,000 "more than strong enough to keep the unemployment rate trending down over time".

Black unemployment rose to 6.5 percent from a record low of 5.9 percent; the Hispanic rate fell to a record low of 4.6 percent. Most economists say they still think the low unemployment rate will eventually force more employers to offer higher pay in order to fill jobs.

The manufacturing sector, a target of Trump's "Make America Great Again" agenda, added 36,000 jobs in June, just the latest of a series of good news stories about the industry.

The leap in manufacturing employment was nearly all within the durable goods realm, +32,000.

Staffing in "professional and business services" (+50,000) received boosts from "temporary help services", +9,000; "architectural and engineering services", +7,000; and "computer systems design and related design", +6,000.

The healthy payroll expansion undertaken by architectural and engineering firms is encouraging news for contractors.

"A higher unemployment rate coinciding with a strong jobs gain in June is the best of possible worlds for Canada, with more of us working, but perhaps a bit more room for that to continue without triggering an inflation spike", Avery Shenfeld, chief economist at CIBC Capital Markets, wrote in a note to clients. June's figures mark another increase-this time of 4,800 jobs.

The dollar extended losses against the euro and the yen after the employment report. The first, B-3, is for all workers, including supervisors.

However, the annual increase in average hourly earnings was unchanged at 2.7%. The government sector added 11,000 jobs, mostly due to an increase of 13,000 jobs in local government. Average hourly earnings growth remained 2.7% against hopes of a slight pick-up to 2.8%.