USA unemployment rate ticks up to 4 pct in June

08 July, 2018, 18:41 | Author: Regina Silva
  • Enlarge this image

But retailers cut 21,600 jobs last month, after boosting payrolls by 25,100 in May.Government payrolls increased by 11,000 jobs in June.

Among industrial sub-sectors, the three standouts for jobs improvement in June were: "education and health services", +54,000; "professional and business services", +50,000; and in a long-time-coming and pleasantly-welcome development, "manufacturing", +36,000.

As unemployment rose, the closely-watched labor force participation rate also edged higher to 62.9 percent, while the number of people counted as unemployed rose to 6.6 million people, up almost a half million.

Average hourly earnings of private-sector workers rose 2.7 percent in June from a year ago, in line with recent monthly readings, suggesting that wage growth remains modest.

"Despite ongoing concerns about being on the brink of a trade war, today's jobs report shows the continued strength of the economic recovery in the US", said Tony Bedikian, head of global markets at Citizens Bank.

The monthly Labor Department report also revised up figures for April and May, reporting that 37,000 more jobs were created in these months than previously estimated. The U.S. central bank raised interest rates last month for the second time this year and has projected two more rate hikes by year end. Moreover, the increased borrowing costs could lead to dampening of economic activity.

"There's definitely still a lot of room for the labour market to absorb the slack", Kevin Hassett, chairman of the White House Council of Economic Advisers, said on Bloomberg Television.

Brazil's World Cup misery continues at the hands of Belgium
Fernandinho's own-goal ensured for the first time since March 2017 that Brazil was trailing in a competitive match. De Bruyne doubled Belgium's lead in the 31st minute following a swift counterattack following a Brazil corner.


Putting woes: But Rory McIlroy still in the mix at Irish Open
I'm away from it for a week and I miss it and I want to get back to it. Here are 10 players I like to contend this week on the emerald isle.


UFC 226: Daniel Cormier ends Stipe Miocic's reign with a knockout
Miocic forced a clinch and sloppily pulled out of it moving towards his left , running straight into Cormier's huge right hand. Cormier has been a clean fighter for his entire career and he has truly dominated his competition throughout his career.


A healthy gain of 31,800 jobs last month wasn't enough to keep Canada's unemployment rate from rising to six per cent as more people searched for work.

Signs of the Trump administration's trade war with China and did not show up in the report.

Faster wage growth would have also indicated that inflation was building in the economy, which hasn't strongly been the case even though unemployment is low. Prices for U.S. Treasuries rose.

In the past three months, the United States has increased 211,000 jobs monthly on average. Neither the BLS report nor any of the establishment press outlets have sought to provide any explanation for this trend, which runs contrary to the commonly-accepted capitalist economic principle that a tighter labor market will result in higher wages as employers compete against one another for workers.

The U-6 or underemployment rate rose to 7.8 percent from 7.6 percent; the gauge includes part-time workers who'd prefer a full-time position and people who want a job but aren't actively looking. US tariffs on $34 billion worth of Chinese goods are due to come into effect on Friday. "The unchanged 2.7 percent rise in June helps keep the Fed on a gradual path of rate hikes", MarketWatch said.

Hanging over the labor market are President Trump's tariffs on goods from some of America's largest trading partners, along with retaliatory charges. However, the official figures are yet to be released till later this month. There are also growing fears of global disruptions as a trade fight escalates between the USA and China.

The picture was brighter for the leisure and hospitality industry.

Recommended:



Popular

Wireless speaker maker Sonos is going public
Those 19m products are found in around 6.9m homes worldwide, Sonos says, and the immediate upshot is more music being played. Speaker maker Sonos is aiming to go public, filing an Initial Public Offering (IPO) in order to raise as much as $100M ...

Michael Cohen Removes Trump Affiliation From Twitter And LinkedIn
Some suggested that he might do the same to Cohen, long considered Trump's "fixer", but there is an apparent rift between the two. Sure, most know of Borat (the film that brought Sacha Baron Cohen to worldwide fame) but they've missed out on one of his gems.

2nd T20I: India looks to wrap up early series win
Also, Rohit Sharma is in need of 19 more runs to be the second Indian batsman to score 2000 runs after Virat Kohli in T20Is. India , who won the first match by eight wickets, started poorly after losing the toss and slumped to 22 for three.

Devin Booker signs max contract with Suns
Phoenix Suns' Devin Booker is one of the youngest National Basketball Association players to reach 4,000 points. This is just the first of what should be many battles between Ayton and Bagley as pros.

'Maybe we won't get this opportunity again', says Southgate
Kane said the shootout win over Colombia had given his teammates great confidence should a similar scenario arise on Saturday. Brazil came to Russian Federation with a strong team, a well-liked coach and a great star.

US Warships Pass Through Taiwan Strait Amid Tensions With Beijing
Navy ships transit between the South China Sea and East China Sea via the Taiwan Strait and have done so for many years", Brown told The Japan Times.

Mark Zuckerberg tops Buffett to become world's third-richest man
The "Oracle of Omaha" has donated about 290 million Class B shares, which are now worth more than $50 billion, Bloomberg noted. Buffett has donated about 290 million of his shares in Berkshire Hathaway to charities - an equivalent of about $50 billion.

England have the edge over Croatia, says Hamann
Italy was the last team to do so, with comeback wins against Mexico and West Germany in the 1970 quarters and semis respectively. At 1-1, Fernandes missed his shot - only the second player to miss in any of the four shootouts at this year's World Cup .

Hamilton blazes to pole position for British GP
His response was dramatic, another record lap in 1:25.892 and a pole that gives him a ideal chance to claim a record sixth home win and fifth in successive years in Sunday's race.

Boston commuters haul a train off woman's leg
Police confirmed that while no bones had been broken, the deep laceration was so severe the unidentified woman would need surgery. But when Emergency Medical Technicians arrived, the woman gave in and agreed to ride in their ambulance to get medical treatment.