United States added 224,000 jobs in June

United States added 224,000 jobs in June

Nonetheless, in context of a low inflation indication alongside heightening risk over United States economy from an exacerbated trade spat with China, last month Fed signaled an interest rate cut as early as this month.

Economists surveyed by Bloomberg expected 160,000 job gains. But the pace of job growth this year has slowed from 2018, when employers added an average of 223,000 jobs per month.

Manufacturing picked up, with factories adding 17,000 jobs. The pace, however, remains well above the roughly 100,000 needed to keep up with growth in the working age population. While the expansion is the smallest and slowest on record, its consistency is a sign that the post-recession economy has staying power. The trade war has undercut business confidence, leading to a downturn in equipment spending and manufacturing. In total, the economy has added more than 6 million jobs since President Donald J. Trump was elected. However, it could take time to get a suitable deal made.

"Our country continues to do really well", but "If we had a Fed that would lower interest rates, we would be like a rocket ship", he told reporters at the White House.

The Atlanta Fed is forecasting gross domestic product rising at a 1.3% annualized rate in the April-June quarter.

Average hourly earnings rose 6 cents to $27.90 after a 9-cent increase in May. The economy grew at a 3.1% rate in the first quarter. The trend in wage growth has slowed from late a year ago when wages were rising at their fastest rate in a decade, pointing to moderate inflation. The dollar rose against a basket of currencies, while U.S. Treasury prices fell.

"That's good for consumer spending", House said, which is a major pillar of the USA economy.

But the headline of estimate-beating payroll additions may not mean much to a Fed that has already said it feels comfortable with the tightness of the labor market.

Looking within the latest jobs data, wages ticked up by only 0.2 percent last month - below the 0.3 percent increase analysts expected. Some of the recent drop in the jobless rate had been because of people leaving the labor market. The average work-week in June held steady at 34.4 hours.

Growth was balanced between industries, with strong gains in key sectors.

The Fed will be closely watched in the coming week as Chairman Powell heads to Capitol Hill next Wednesday and Thursday for back-to-back days of Congressional testimony.

Construction employment rose by 21,000 jobs last month after gaining 5,000 in May.

The June jobs report may dampen expectations that the Federal Reserve will slash rates by 50 basis points at its next policysetting meeting. The surge in hiring was driven by local governments. But the stabilizing rate last month suggest there is still some capacity to draw workers in off the sideline, a key to future employment and economic growth. The health care sector added 35,000 jobs; transportation and warehousing contributed another 24,000 amid the continuous boom of online buying and selling. With that said, the pace of hiring has clearly downshifted in the economy this year, as the 12-month moving average has trended below 200,000 throughout most of the year.

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