Published: Sun, July 08, 2018
Economy | By

June was solid hiring month for business services and factories

June was solid hiring month for business services and factories

Employers added 213,000 jobs in June according to the U.S. Department of Labor.

This caused the unemployment rate to tick up to 4% from 3.8% even as employers added 213,000 jobs, and it's more evidence that faster growth is luring more people back into the workforce.

In June, the United States unemployment rate unexpectedly rose to 4% from 3.8% the month before, coming off an 18-year low.

Ontario added 34,900 jobs for an increase of 0.5 per cent compared with the previous month, while Saskatchewan posted its largest monthly gain in over six years with the creation of 8,300 positions, which represented 1.5 per cent growth. The U.S. central bank increased interest rates last month for the second time this year and has projected two more rate hikes by year end.

However, the labour participation rate suggests the city had the lowest rate of labour participation or people who are employed, in the country. The central bank could stick to its plan to gradually increase interest rates. The agency's Bureau of Labor Statistics issued its monthly look at the employment situation in the USA, showing a rebound in the legal services sector after more tepid results in May. The job market is so good, many people who had previously given up looking are starting again.

It is expected to hover around its target for a while, in part because of labor market tightness. Just hours before the monthly jobs report was released, the Trump administration imposed taxes on $34 billion in Chinese imports, and Beijing hit back with tariffs on the same amount of USA goods.

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.

The Trump administration has also applied tariffs on steel and aluminum from allies like Canada and Mexico and has threatened to abandon the North American Free Trade Agreement.

A steady pace of hiring and gradually rising wages, along with lower taxes, are helping underpin consumer spending and propelling a rebound in U.S. growth this quarter. This extra labour supply has seemingly helped keep wage growth in check. It had declined for three months in a row.

The US economy keeps adding jobs at a blistering pace. Full-time employment was up by 9,100 By sector, employment in goods producing industries was up by 46,600, the highest since April 2012, led by construction and manufacturing Service producing industries lost 14,700 jobs during the month Self-employment was up by 22,000, with employment in the public sector rising by 11,800.

Yet the monthly figures landed the same day as President Donald Trump intensified a global trade war with USA levies on US$34 billion (RM137.36 billion) of Chinese goods, spurring retaliatory tariffs.

Automakers added 12,000 jobs in June, but adverse trade developments could deflate the gain.

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