Published: Sun, August 07, 2016
Economy | By Melissa Porter

US adds a robust 255K jobs; unemployment stays 4.9 pct

US adds a robust 255K jobs; unemployment stays 4.9 pct

In this Tuesday, July 19, 2016, photo, Reina Borges, left, stands in line to apply for a job with Aldi at a job fair in Miami Lakes, Fla. Many more Americans began looking for jobs, and many were hired. The number of people working part-time for economic reasons rose to 5.94 million from 5.84 million.

Jason Furman, chairman of the Council of Economic Advisers, said that growth this year has averaged 186,000 jobs a month, which is "well above the pace needed to maintain a low and stable unemployment rate".

Fed policymakers' decision last week to leave interest rates unchanged was accompanied by affirmation that risks to the US economy have eased and the job market has continued to tighten - all suggesting that a boost in borrowing costs at their next gathering September 20-21 remained on the table before Friday's Labor Department data. Home Depot also added $1.37, or 1 percent, to $137.42 and Nike gained 98 cents, or 1.8 percent, to $55.78. But the influx of job seekers meant that the number of unemployed fell only slightly.

The figures suggest that US employers shook off concerns about Britain's late-June vote to quit the European Union. After last week's news that the economy expanded by just 1.2% at an annual rate in the April-June period, the third straight quarter of feeble growth, many analysts say only payroll gains topping 200,000 in both July and August can prod a cautious Fed to consider lifting rates next month. Banks rose the most Friday morning, as higher interest rates boost their profits on lending.

But manufacturing hiring slowed, with a gain of 9,000 net jobs last month, down from 15,000 in June. The Federal Reserve is looking for stronger pay increases and inflation as it weighs another interest rate hike. Duncan said "the report gives support to those on the Fed hoping to increase rates this year, especially if the numbers are supported in future releases".

US adds a robust 255K jobs; unemployment stays 4.9 pct
US adds a robust 255K jobs; unemployment stays 4.9 pct

July surpassed expectations for job growth in the US, and although the national unemployment rate stayed the same, the Latino labor force saw gains in job growth. In addition, average hourly earnings increased 0.3 per cent after edging up 0.1 per cent in June. Its stock climbed 86 cents, or 4.1 percent, to $21.89. In the past year, average hourly earnings have risen by 2.6 percent.

Business and professional firms led the way, adding 70,000 jobs.

Financial services added 18,000, and construction added 14,000. Government positions rose 38,000, the most in more than a year. Hotels and restaurants added 27,000. Its growth has been weak since last fall.

Unemployment rates for all veterans and especially for post-9/11 veterans went up in July despite a rosy government jobs report Friday that showed the US economy strengthening.

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