220000 jobs added to US Labor Market in June

Job creation in the US has slowed down this year.   Jim Young  Reuters

NEW YORK, July 7 (Reuters) - The dollar gained on Friday after a report showed the usa economy created far more jobs than expected in June and previous months, keeping the Federal Reserve on track to raise interest rates at least one more time this year.

The unemployment rate, rising wage growth and job gains indicate an economy on the rise, but the sluggish growth in the average hourly earnings (2.5 percent over the year) is still cause for concern.

Chief economist for the global information company, IHS, Nariman Behravesh says wage growth will probably pick up over the next year as the economy gains between 150 and 180 thousand jobs a month.

Since a year ago, wages have grown 2.5 percent.

Healthcare added 37,000 jobs and businesses services 35,000.

The remaining 1.1 million people marginally attached to the labor force in June had not searched for work in the past month for reasons such as school attendance or family responsibilities, according to the BLS.

June marked the 81st consecutive month of jobs growth in the United States but the recovery from the depths of the 2007 recession has been marked by slow wage growth and a worryingly large number of workers in part-time work. "Really great numbers on jobs & the economy!" he wrote. CareerBuilder's 2017 Midyear Job Forecast is predicting that 60 percent of employers plan to hire full-time, permanent workers in the second half of this year, up from 50 percent last year.

The report revised May's comparatively sombre report, adding a net 47,000 jobs to the totals for that month and to April.

"If you are going to describe today's report as 'strong, ' my advice would be to refrain from telling that to men in the prime working age 25-to-54-year-old age cohort because their employment pool shrunk 21,000 in June and this came atop a 92,000 falloff in May".

"What matters to the Fed is that the rebound in payrolls strongly supports their view that the soft-looking spring data were "transitory", and that the trend in the unemployment rate is guaranteed to fall further if payroll gains are sustained at anything like their June pace", said Ian Shepherdson, chief economist at Pantheon Macroeconomics. The unemployment number last month was the lowest it's been in a decade. The rate rose because more Americans began looking for work, but not all found jobs. Employment rose in health care, social assistance, financial activities, and mining.

In Massachusetts, more people are entering the work force - and the labor force participation rate is increasing. The industry has added 277,000 jobs over the year. In manufacturing, the workweek edged up by 0.1 hour to 40.8 hours, while overtime was unchanged at 3.3 hours.

The June jobs report is out and it's a beat.

The Bureau of Labor Statistics also adjusted the figures for April (from 174,000 to 207,000) and May (from 138,000 to 152,000). This puts average net jobs creation for the past three months of +193,667 (rounded).

Share

Related News