For June, U.S. adds jobs, but wages lag

According to a government report on Friday, the US labor market continued to power forward in June, adding another 200,000 jobs.

- USA job growth increased more than expected in June as manufacturers stepped up hiring, but steady wage gains pointed to moderate inflation pressures that should keep the Federal Reserve on a path of gradual interest rate increases.

Economists had forecast that June would be another strong month for the US labor market, with nonfarm payrolls expected to have grown by 195,000 during the month with the unemployment rate expected to hold steady at an 18-year low of 3.8%, according to estimates compiled by Bloomberg. Average hourly earnings are 2.7 percent higher than a year ago, a lackluster pace compared to past eras of healthy job growth when wages were rising at 3.5 percent or more a year.

Hassett pointed to the increase in labor force participation for African American women and Hispanic men and women as an encouraging sign that people are being drawn back to work. This suggests the Federal Reserve needs to keep raising interest rates with at least two more rate hikes likely this year.

Canada's tight jobs market is beginning to bring more workers into the labour force, a trend that if sustained may moderate a recent pick up in wage pressures.

The bottom line is that the buoyancy in June's US labor market statistics will reaffirm the Federal Reserve's view that the economy is doing super-well at present and that further interest rate hikes will be justified.

Signs of strength have helped bolster hiring despite the difficulty many employers say they're having in finding enough qualified workers to fill jobs.

Rescue mission to save boys trapped in Thailand cave underway
Meanwhile, Narongsak Osottanakorn said on Friday evening that the boys can not be rescued immediately, The Guardian reported. They are hoping that an upgraded draining effort can lower the water in an area where it is still at or near the ceiling.

It is expected to hover around its target for a while, in part because of labor market tightness.

From Table B-3, average hourly earnings were +2.7% year over year in June economy-wide, while average weekly earnings were +3.0%. Fed officials last month boosted the number of interest-rate hikes they expect in 2018 to four from three.

Gross domestic product estimates for the April-June period are above a 4 percent annualized rate, double the 2.0 percent pace logged in the first quarter.

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".

The gain in US total employment through the first half of this year has been 1.3 million jobs. Manufacturing and professional and business services saw gains, with 36,000 and 50,000 jobs added, respectively.

Yet another month of robust job creation showed that, despite complaints from companies nationwide about the worsening labour shortage, there remained untapped pockets of idled workers at last able to reenter the jobs market after almost a decade of economic recovery. Levies on $34 billion in Chinese goods took effect at 12:01 a.m. Friday.

Related Articles

  • England vs. Sweden final score, recap

    England vs. Sweden final score, recap

    Performing the moves IRL has become quite the trends, and seeing them outside of the game is a real hoot. We did create some opportunities at the start of the second half'.
    North Korea: Talks with Pompeo 'regrettable'

    North Korea: Talks with Pompeo 'regrettable'

    And he said progress had been made towards agreeing "the modalities" of North Korea's destruction of a missile facility. North Korean officials called Pompeo's visit "deeply regrettable ", in a statement, according to The New York Times .
    Livescore: Result of Russian Federation  vs Croatia

    Livescore: Result of Russian Federation vs Croatia

    The date of the last time an England's men's side played in a semi final of a World Cup. Croatia's Dejan Lovren and team mates celebrate winning the penalty shootout.
  • Trump challenges ‘Pocahontas’ Warren to DNA test

    Springfield Congressman Richard Neal is responding to President Trump's jab Thursday at MA U.S. Trump continued to attack, without naming him, Arizona Sen.
    Brock Lesnar Crashes UFC 226, Shoves Daniel Cormier

    Brock Lesnar Crashes UFC 226, Shoves Daniel Cormier

    Now he is ready to move back up to heavyweight for at least this fight, and he weighed in at 246 pounds, 3 more than Miocic. Rumors have been swirling for weeks that WWE Universal Champion Brock Lesnar wants to make a trip back to the Octagon.
    Daniel Cormier Trips And Falls At Presser, Causes Widespread Panic

    Daniel Cormier Trips And Falls At Presser, Causes Widespread Panic

    But that said, do yourself a favor and bury your bookmaker this Saturday night and watch Cormier become a two-division UFC champ. In that sense, they're kindred spirits, so there is no bad blood or trash talk on display as the bout approaches.
  • Pompeo says progress made with North Korea amid denuclearisation talks

    Pompeo says progress made with North Korea amid denuclearisation talks

    A key aim of Mr Pompeo's two days of talks was to firm up North Korea's commitment to denuclearisation. The North Korean delegation was led by Kim Yong-chol, a senior aide to the country's leader.
    Croatia explodes with joy as team reaches World Cup semis

    Croatia explodes with joy as team reaches World Cup semis

    Croatia will face England on Wednesday, July 11th. "We believe that it will be a very tough, hard match", Modric said. Vida makes it 2-1 in the 100th minute. "It doesn't' have to be 3-0", Croatia head coach Zlatko Dalic said.
    U.S. fisherman says American border patrol stopped him in disputed waters

    U.S. fisherman says American border patrol stopped him in disputed waters

    Even so, Drouin said that a Canadian Coast Guard ship appeared in the zone in recent days, an apparent response to the US actions. A statement from the association released Wednesday said the waters have been fished by both USA and Canadian crews for years.
  • The 5 things we know about the 2019 Suzuki Jimny

    The 5 things we know about the 2019 Suzuki Jimny

    The all-new Suzuki Jimny will run a 1.5-litre four-cylinder petrol engine which replaces the old car's 1.3-litre four-pot. The Jimny's interior, meanwhile, gains modern features such as a 7-inch touchscreen infotainment system with Bluetooth.
    Russian Team's World Cup Dream Ends, But Country Hails 'Heroes'

    Russian Team's World Cup Dream Ends, But Country Hails 'Heroes'

    Andrej Kramaric's header cancelled out a stunning strike from hosts' Denis Cheryshev to leave the teams level at halftime. This media house does not correct any spelling or grammatical error within press releases and commentaries.
    Johns Hopkins hospital buildings evacuated after possible release of tuberculosis today

    Johns Hopkins hospital buildings evacuated after possible release of tuberculosis today

    Public safety officials as well as infectious disease experts have now cleared the buildings, and the evacuation has been lifted. The bacteria usually attack the lungs, but TB bacteria can attack any part of the body such as the kidney, spine, and brain.