June Employment Report Expected To Show Rebound In Job Growth

Ann Santiago
July 8, 2019

But now America has added more than half a million manufacturing jobs under President Trump - after then-President Barack Obama announced during the 2016 campaign that it would take a "magic wand" to reverse the sector's decline.

"Today's jobs report shows the USA economy continues to create jobs at a strong pace even as we enter the longest period of economic expansion on record", Citizens Bank analyst Tony Bedikian said of the report, and the record.

"Today's jobs report shows the USA economy continues to create jobs at a strong pace even as we enter the longest period of economic expansion on record", said Tony Bedikian, managing director and head of global markets at Citizens Bank in an email.

One caveat from the report, however, is that the strong job numbers were accompanied by fairly disappointing wage growth.

The education and health services industry, which added 61,000 jobs, experienced the largest job growth in June.

Average hourly earnings rose 6 cents to $27.90 after a 9-cent increase in May.

Adding to the positive story, 335,000 people entered the labor force in June - substantially more than usual - which may have been what pushed the unemployment rate up slightly. Last month's burst of hiring suggests that many employers have shrugged off concerns about weaker growth, President Donald Trump's trade wars and the waning benefits from US tax cuts. Over the past 12 months, wages were up 3.1%, also a notch below market estimates of 3.2% and indicative that significant inflation pressures remain at bay. However, that will probably not be enough to discourage the Federal Reserve from chopping rates of interest this month amid growing evidence the economy is slowing.

HORSLEY: The stock market dropped this morning amid worries the Fed would not cut interest rates.

And joblessness overall remains near 50-year lows, with African Americans in particular seeing an unemployment rate lower than they've had in decades. The average work week was unchanged at 34.4 hours.

The Dow fell more than 150 points early Friday after the government's report.

On Friday, the Fed reiterated that it would act as necessary sustain the economic expansion, while noting that most Fed officials have lowered their expectations for the course of rates. This helped mask some of the weakness elsewhere on the service side of the economy, including the fifth consecutive monthly decline in retail employment.

Friday's jobs report reflects conditions in the middle of June, after the threat of tariffs on Mexico was lifted, but before President Trump met with Chinese President Xi Jinping last weekend and agreed not to impose tariffs on an additional $300 billion in Chinese imports. The Fed's statement came in its semiannual report on monetary policy.

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