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Published: Mon, July 09, 2018
Economy | By Melissa Porter

U.S. job growth was likely solid in June despite trade risks

U.S. job growth was likely solid in June despite trade risks

The economy has now been adding jobs for almost 8 years - its longest streak on record.The U.S.is considered at near full employment, and the biggest challenge in the job market is the lack of available workers - a record 6.7 million jobs remain unfilled.

DePratto stressed he didn't see anything in the jobs report to deter Poloz from hiking the rate next week.

"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 USA", said Tony Bedikian, head of global markets at Citizens Bank.

Department of Labor Secretary Alex Acosta said, "It rose because more people are choosing to re-enter the labor force, to come back".

For the Fed, the report presents a bit of a dilemma.

Workers who haven't gone to college accounted for all of this month's net increase in the labor force and employment.

The employment increase last month beat economist expectations for a 20,000 gain and was the second highest so far in a year where job creation has been sluggish. "Over the year, average hourly earnings have increased by 72 cents, or 2.7 percent", BLS said on Friday.

That said, the labor market isn't ideal. There are two tables focusing on compensation in the Employment Situation report, B-3 and B-8. Prices for U.S. Treasuries rose. Even with more and more jobs, annual wage growth has remained stubbornly below 3% since early 2009.

MA is the third best state to be looking for work, since job hunters enjoy 30 weeks of unemployment insurance; longer than any other state.

Black unemployment rose to 6.5 percent from a record low of 5.9 percent; the Hispanic rate fell to a record low of 4.6 percent. Many estimates for growth in the second quarter are bouncing above 4 percent. But the Trump administration's "America First" trade policy, which has left the United States on the brink of trade wars with other major economies poses a risk to the labor market and economy. On the same day as the release of June's jobs report, the US and China are imposing duties on more than $30 billion-worth of each other's goods. Levies on US$34 billion in Chinese goods took effect at 12:01 am Washington time on Friday. However, the official figures are yet to be released till later this month.

Economists expect the manufacturing sector to bear the brunt of the tit-for-tat tariffs, through a slowdown in hiring and capital expenditure. 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. "Over the month, job gains occurred in professional and business services, manufacturing, and health care, while employment in retail trade declined". Retailers cut 21,600 jobs last month, after boosting payrolls by 25,100 in May.

Canada received a dose of new jobs last month, maintained sturdy wage growth and saw more people searching for work - all seen as positives by experts who believe the path is clear for the central bank to raise interest rates next week.

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