United States employers added 213,000 jobs in June, unemployment rate rose to 4%

United States employers added 213,000 jobs in June, unemployment rate rose to 4%

Last month, USA employers added 213,000 jobs, exceeding already high expectations of 195,000.

Despite the added jobs, the unemployment rate rose to 4.0% from 3.8% as more people began looking for work and not all of them found it.

Still, average hourly pay rose just 2.7 per cent in June from 12 months earlier, meaning that after adjusting for inflation, wages remain almost flat.

The job growth wasn't enough to keep the unemployment rate from rising from 3.8 percent to 4 percent, the government said July 6.

Employers in the United States are thought to have kept up their brisk pace of hiring in June, reflecting the durability of the second-longest USA economic expansion on record even in the face of a trade war with China.

Jim O'Sullivan, chief U.S. 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".

Minutes of the Fed's June 12-13 policy meeting published on Thursday were upbeat on the labor market. In June, it was 2.7%, staying the same as the previous month, and falling short of economists' expectations.

The report showed little, if any, evidence of tariff-related weakness in the economy, especially with continued strength in goods-producing jobs.

The OECD attributes this decline to the huge increase in part-time and temporary jobs since 2008. The factory jobs were concentrated in the automobile sector, which had seen a decline in employment in May after a fire at a parts supplier disrupted production. However, the official figures are yet to be released till later this month. At more than 1.141 million people employed in the industry in June, the legal jobs figures edged outside of a range that has prevailed since December 2016.

Despite the small bump in unemployment, a decade of steady job growth following the Great Recession has pushed unemployment to the lowest level in decades.

"Professional and business services" (+28,000) is where most of the outsized revision to May's total jobs number (+37,000) originated.

"Leisure and hospitality" also registered a nice gain in jobs in the latest month, +25,000, led by "food services and drinking places", +16,000.

On the losing end was retail, which shed 21,600 jobs in June, mainly at general merchandise stores.

The labour force expanded by 75,600 in June, the biggest one-month increase in six years, Statistics Canada reported Friday from Ottawa. This was consistent with sectoral data pointing to a more dynamic manufacturing sector among others. "Combined with additional jobs and steady hours, payrolls are up by 5 percent since June 2017".