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Manufacturers Created 36K New Jobs in June, According to US Labor Dept.

09 Juillet 2018

The U.S. legal industry added 4,800 jobs in June as the country's overall economy continued an uninterrupted streak of monthly job growth, according to U.S. Labor Department data released Friday.

While manufacturers opened 36,000 new jobs last month and the education and health sectors contributed 54,000 more, retailers shed 21,600 jobs mainly at general merchandise stores.

Job gains beat expectations in June as 213,000 jobs were added to the economy during the month, while the unemployment rate unexpectedly rose to 4%.

In fact, if we compare the average wage for the last three months (April, May, and June) with the prior three months (January, February, and March), it appears to be slowing slightly, with an annualized growth rate of just under 2.6 percent.

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

The change in total nonfarm payroll employment for April was revised up from 159,000 to 175,000, and the change for May was revised from a gain of 223,000 to 244,000.

The labor force participation rate, or the proportion of working-age Americans who have a job or are looking for one, rose to 62.9 percent last month from 62.7 percent in May. Pay hikes haven't picked up as much as anticipated in light of the historically low jobless rate, but economists expect annual gains to reach 3 percent by the end of the year. That marks a 72 cent increase for average hourly earnings over the year so far.

"There's definitely still a lot of room for the labour market to absorb the slack", Kevin Hassett, chairman of the White House Council of Economic Advisers, said on Bloomberg Television. "State regulations that would provide more weeks of unemployment insurance would help these states rank higher, but because the job market isn't as strong in these states as it is out west, the improvement process would take a longer time unless an influx of job openings began occurring".

Still, the healthy job gains will likely push down unemployment the rest of the year, economists say.

MA is the third best state to be looking for work, since job hunters enjoy 30 weeks of unemployment insurance; longer than any other state. Businesses have scaled back or postponed investment plans because of trade uncertainty.

Government payrolls increased by 11,000 jobs in June.

Participation remains historically low, and many economists have pointed to the aging of baby boomers as a key reason. "That together with rising inflation should keep the Fed on track to raise interest rates two more times this year". From manufacturing to services industries, companies are reporting difficulties finding skilled workers such as truck drivers, carpenters and electricians.

Manufacturers Created 36K New Jobs in June, According to US Labor Dept.