US Adds 213000 Jobs In June, But Unemployment Rate Inches Up

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The U.S. economy surpassed expectations in June, adding more jobs than expected even as the unemployment rate rose slightly to 4 percent.

The report said most of the job growth occurred in professional and business services, manufacturing and healthcare - while retail trade lost jobs.

Businesses added 213,000 jobs to their payrolls in June, another strong month of gains.

So far this year, the USA economy has added an average of 215,000 jobs per month. With the job market expanding and new workers flooding in, some employers may not feel pressure to hike wages for their employees. So, taking this all together we have a U.S. economy growing at around 4% in the current quarter, that has an incredibly tight labour market with headline consumer price inflation potentially rising to 3% next week.

Payrolls rose 213,000 after an upwardly revised 244,000 advance, Labor Department figures showed on Friday. Some 600,000 people entered the labor force in June, the Labor Department said.

Missouri landed the very worst spot on the list due to the double-whammy of offering half the time (13 weeks) to collect unemployment insurance that most states get, along with suffering the eighth-lowest employment growth (-0.38 percent) in the nation.

Wage growth remained sluggish, however, and was effectively erased by inflation: average hourly earnings rose just 0.2 percent to $26.98, putting wages up 2.7 percent over the same month previous year, the same as the 2.7 percent rise in the Consumer Price Index. Meanwhile, the labor market seems to be ignoring all concerns raised concerning the new measures.

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Faster wage growth would also indicate that inflation is building in the economy, which hasn't been the case even though unemployment is this low.

The U.S. economy faces potential drags going forward, including escalating trade disputes with major trading partners such as the European Union, China, Canada and Mexico. This was consistent with sectoral data pointing to a more dynamic manufacturing sector among others.

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.

The look ahead: "Ignore the uptick in the unemployment rate that stems from the rising labor force".

The slow growth in labor costs may dissuade the Federal Reserve from raising interest rates more aggressively to head off a spike in inflation.

Construction jobs have increased by 282,000 over the year to meet housing demand, and mining has tacked on 95,000 jobs as energy prices jump. By contrast, in the a year ago the unemployment rate has fallen by 0.4 percentage points for workers with just a high school degree, by 0.5 percentage points for workers with some college or an associate degree, and a full percentage point for workers with less than a high school degree.

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