US payrolls rise 213,000; wage gains slow, unemployment up

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Nancy Pelosi Trashes June Jobs Report Warns of ‘Brewing Storm’ of Wealth and Opportunity Chip Somodevilla Getty 6 Jul 2018

The national unemployment rate among Hispanic and Latino-Americans plummeted to the lowest level on record in June, according to new statistics released by the US Bureau of Labor Statistics this week.

The U.S. economy added 213,000 new jobs.

On the same day that the Trump administration began imposing tariffs on $34 billion in Chinese imports and Beijing hit back with tariffs on the same amount of USA goods, the job gain showed that the 9-year old US economic expansion - the second-longest on record - remains on firm footing.

The unemployment rate increased because more people were looking for jobs; the labor-force participation rate rose to 62.9% from 62.7%. This suggests the Federal Reserve needs to keep raising interest rates with at least two more rate hikes likely this year.

These new entrants to the labor market have good reason to think their prospects of finding a job are good: Job growth is really strong.

A boy rides a decorated bicycle down Main Street during the annual Fourth of July parade in Barnstable Village on Cape Cod, Massachusetts, U.S., July 4, 2018.

But in fact more people entering the workforce is a sign of optimism that jobs are available in an economy now entering its 10th year of expansion.

"Wages could rise at a faster pace in the future as the economy is humming and the labor market is tight", said Sung Won Sohn, chief economist at SS Economics in Los Angeles. A separate measure, average hourly earnings for production and nonsupervisory workers, also increased 2.7 percent from a year earlier, unchanged from the prior month's gain.

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Stocks jumped on Friday, riding the wave of the robust jobs report.

Even more surprising is this: If you do the math, the jobless rate actually rose by 0.3 of a percentage point - from 3.75 percent in May to 4.05 percent in June.

The unemployment rate in Windsor dipped slightly last month, but so too did the labour participation rate.

Washington is also engaged in fights with other major trade partners, including Canada, Mexico and the European Union after President Donald Trump imposed tariffs on steel and aluminum imports. 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.

These figures are capable of creating confidence in the economy of the US.

From Table B-8, there were the same hourly and weekly earnings increases across all types of work, +2.7% and +3.0%, but for construction alone, the gains were better, +3.5% hourly and +4.3% weekly.

In June, white-collar professional firms filled 50,000 jobs last month to lead the way in hiring while manufacturers added 36,000 jobs.

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