Trade wars yet to have impact as US adds 213,000 jobs in June
US unemployment rate rises to 4% as more enter job market and wage growth of 2.7% again lags behind chores growth
The US added 213,000 jobs in June as the unemployment rate ticked up to 4 %, indicating the start of an international trade war has so far done little to dent the robust jobs market.
The US has now added jobs every month for 93 months in a row the longest such stretch since records began. The unemployment rate most likely rose as more people who were not looking for work started job searches.
There was more good news from previous months. Growth in employment for April was revised up from 159,000 to 175,000, and the change for May was rewritten up from 223,000 to 244,000.
But wage growth, which has been modest for a decade, lagged behind tasks growth again, rising merely 2.7% from a year earlier.
The latest report from the commerce department goes as the US and China slapped levies of $34 bn on one another exportations amid an intensifying trade dispute that now involves all of the U’Ss largest trading partners.
On Thursday the Federal Reserve released the minutes of its latest meeting , noting that business contacts had expressed concern about the possible adverse effects of tariffs and other proposed trade restrictions, both domestically and abroad, on future investment activity.
But so far those concerns have not led to a fall in employ. The report comes after ADP, the U’Ss largest payroll supplier, said the private sector had added 177,000 jobs in June.
Mark Zandi, chief economist of Moodys Analytics, which helps compile research reports, said the tight labour markets , not the trade dispute, was currently the biggest problem faced by US business.
Business number one problem is detecting qualified workers. At the current pace of job growth, if sustained, this problem is set to get much worse. These labor deficits will merely intensify across all industries and company sizes, told Zandi.
Economists had been expecting the economy to add 195,000 new jobs over the month and for the unemployment rate to remain steady at 3.8%. The unemployment rate rose in June as 601,000 people entered the job market and the labor force participating interest, which measures percentages per of the workforce in employment or looking for work, edged up to 62.9%.