USA job growth strong but unemployment rate rises to 4%

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The report also shows that the share of workers who have multiple jobs remained stable over the a year ago at 4.8 percent.

At the same time, the unemployment rate rose to 4 per cent from 3.8 per cent, the government said Friday, as more people began looking for a job and not all of them found one.

The OECD attributes this decline to the enormous increase in part-time and temporary jobs since 2008.

The economy has now been adding jobs for almost eight years - its longest streak on record.The 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. The participation rate, or share of working-age people in the labor force, increased to 62.9 percent from 62.7 percent the prior month. Meanwhile, yesterday's minutes of the June FOMC meeting reported "some" contacts said, "plans for capital spending had been scaled back or postponed as a result of uncertainty over trade policy". The labor force participation has increased, which brought the unemployment rate up slightly from 3.8 percent to 4 percent. It had declined for three straight months.

Average hourly earnings rose by 5 cents, or 0.2%, to $26.98, lower than market expectations for a 0.3% improvement. This means that workers' wages will likely fall behind the rate of inflation, which in May reached 2.8 percent. "There are more people coming into the labor force", said Satyam Panday, senior economist at S&P Global Ratings. But with a record 6.7 million unfilled jobs in April, economists are confident that wage growth will accelerate later this year. Prices for U.S. Treasuries rose.

The long-in-the-tooth nature of the current boom cycle, generally rising interest rates and foreign trade conflicts are among the reasons investors have been leaving major stock market indices around the world in neutral this year. In spite of healthy job growth, wage growth is especially weak in manufacturing, rising just 1.7 percent over the previous year.

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

A broader measure of unemployment, which includes people who want to work but have given up searching and those working part-time because they can not find full-time employment, rose to 7.8 percent last month from a 17-year low of 7.6 percent in May. Many estimates for growth in the second quarter are bouncing above 4 percent.

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What about tariffs? On Friday, the US formally imposed an additional $34 million in tariffs on China. 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.

Hanging over the labour market are President Donald Trump's tariffs on goods from some of America's largest trading partners, along with retaliatory charges. The U.S. and China slapped tit-for-tat duties on $34 billion worth of the other's imports on Friday.

But the Federal Reserve reported that businesses are becoming anxious about the fallout.

They expect the manufacturing sector to bear the brunt of the trade fights, through a slowdown in hiring and capital expenditure. There are also growing fears of global disruptions as a trade fight escalates between the US and China.

But in fact more people entering the workforce is a sign of optimism that jobs are available in an economy now entering its 10th year of expansion.

The picture was brighter for the leisure and hospitality industry.

As for the jobs-creation performance of the general and sub-trade contracting industry in June, however, the motion forward was a little disappointing, +13,000 jobs. Jobs in educational services jumped 18,900, compared with an average of just over 5,500 in the a year ago.

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