Published: Mon, July 08, 2019
Markets | By Erika Turner

Economy adds 224,000 jobs in June rebound

Economy adds 224,000 jobs in June rebound

But with June's pace of hiring, employers have now added, on average, a solid 171,000 jobs for the past three months.

The nation added a net 224,000 jobs last month, the Labor Department announced, markedly more the expected 165,000.

Another ominous sign? The number of Americans working multiple jobs soared by 301,000 in June - from 7.8 million to 8.1 million. That kept the annual increase in wages at 3.1 percent in June for a second straight month. But the pace of job growth this year has slowed from 2018, when employers added an average of 223,000 jobs per month. For the private sector, nonfarm payrolls added 191,000 in June following a gain of 83,000 in May. Notable job gains were seen in several sectors, including professional and business services (adding 51,000 jobs), health care (35,000) and transportation and warehousing (24,000). Average hourly earnings rose six cents or 0.2 percent in June after gaining 0.3 percent in May. The labor force participation rate for prime-age adults (ages 25-54) which largely avoids the demographic effects of the aging population increased by 0.1 percentage point to at 82.2 percent-0.8 percentage points above its rate in November 2016 when the President was elected.

Trump on July 5 urged the Fed to lower interest rates, saying it would further boost the economy. With that said, the pace of hiring has clearly downshifted in the economy this year, as the 12-month moving average has trended below 200,000 throughout most of the year.

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HORSLEY: After the blockbuster jobs report, the Federal Reserve may feel less pressure to cut interest rates, but President Trump is still beating that drum. The Asian-American unemployment rate dropped to 2.1 percent, its lowest rate since at least 2003 when the current series began.

Andrew Hunter, Senior U.S. Economist at Capital Economics, said the strong jobs data would seem to "make a mockery" of market expectations the Fed will cut interest rates by up to 50 basis points later this month. Some economists argue there is still enough economic uncertainty to warrant an "insurance move" by the Fed, but Wall Street sank into the red after the numbers were released, retreating from Wednesday's record closes. On Friday, the US government issues the June jobs report. "JOBS, JOBS, JOBS!" he wrote on Twitter, claiming credit for record employment levels. The Fed's statement came in its semiannual report on monetary policy.

Lack of concrete progress in resolving a bitter trade war between the USA and China was additionally seen forcing the USA central bank's hand, no matter an influential employment report from the Labor Department on Friday. That suggests that the unemployment rate will remain near its five-decade low and that the economy will keep growing, even if only modestly.

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