Published: Mon, August 08, 2016
Economy | By Melissa Porter

US payrolls gains beat expectations, wages rise

US payrolls gains beat expectations, wages rise

Investors cheered the better-than-expected showing.

Investors appeared pleased by the data, with the Dow Jones industrial average surging about 160 points - almost 1 per cent - in midmorning trading. Hiring rebounded in June with a net gain of 287,000, but recent economic figures and a faltering European economy had suggested another slowdown.

The July non-farm payrolls report also showed average hourly earnings increased by 8 cents to $25.69 during the month, and posted a 2.6% gain on a year-over-year basis. That would fall well shy of last year's 2.6 percent growth rate and amount to the weakest pace of economic output since 2013, when GDP slid to 1.7 percent.

The U.S. Federal Reserve left the benchmark interest rate unchanged last week, and said that near-term risks to the economic outlook have diminished. (Their unemployment rate topped 15 percent in the recession.) For workers with only a high school diploma, the unemployment rate is down to 5 percent from more than 10 percent during the recession.

The median view among 13 banks placed a 50 percent chance the Fed would raise rates at its December meeting. The unemployment rate remained steady from last month at 4.9%, falling slightly short of the 4.8% forecast.

America's job market remains one of the few bright spots in the economy.

Some economists raised the possibility that the job gains will embolden the Federal Reserve to resume raising rates later this year, though perhaps not before December. Fed chair Janet Yellen has said the economy needs to create just under 100,000 jobs a month to keep up with population growth. Turning points are always harder to measure, and it seems like we're always turning. "This rate of job growth will not be sustained".

His son Donald Trump Jr claimed last month that unemployment figures were manipulated for political purposes, a claim frequently made in political seasons but which was quickly refuted by PolitiFact. That compares favorably to the 206,000 average for the 12 months ended July 31. Construction firms added 14,000 positions after two months of declines. Despite a mediocre lead-in from ADP and expectations set at the 180K mark (which the Washington Post called "solid" for some reason), the July jobs report showed that the U.S. economy added 255,000 jobs. "Job growth was broad-based in July". AstraZeneca, which is also studying a lung cancer drug regimen, added 37 cents, or 1.1 percent, to $34.67.

Hours and earnings both increased in July too.

He added, "Nonetheless, we have our doubts it will happen given the mixed nature of the USA data flow and political uncertainty relating to the election, while external risks remain a possible constraint".

Temporary-help jobs, a harbinger of future hiring, increased 17,000. The job-market recovery has been long - employers have added jobs for a record 70 consecutive months - but it hasn't been particularly strong by historical standards. Many businesses are offering higher pay to attract workers as competition to fill jobs heats up.

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