USA jobs report shows room to run as trade war threatens gains

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On the negative side, the unemployment rate for black workers increased 0.6 percentage points to 6.5 percent from the record low hit in May.

The labour force expanded by 75,600 in June, the biggest one-month increase in six years, Statistics Canada reported Friday from Ottawa. Even so, a steady pace of hiring and gradually rising wages, along with lower taxes, are helping underpin consumer spending and propelling a rebound in USA growth.

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. And the unemployment rate remains at its lowest in more than 18 years.

"There's definitely still a lot of room for the labour market to absorb the slack", Kevin Hassett, chairman of the White House Council of Economic Advisers, said on Bloomberg Television. "But enjoy the good news in the June report", Holtz-Eakin said.

A boy rides a decorated bicycle down Main Street during the annual Fourth of July parade in Barnstable Village on Cape Cod, Massachusetts, U.S., July 4, 2018.

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However, the retail sector shed 22,000 jobs. At more than 1.141 million people employed in the industry in June, the legal jobs figures edged outside of a range that has prevailed since December 2016.

Just hours before the monthly reports came out, the Trump administration imposed tariffs on $34 billion worth of Chinese imports, prompting the Asian country to immediately reiterate.

For Catherine Barrera, who works as the Chief Economist for online job site ZipRecruiter, reportedly said the labor force numbers quelled her concern about the unemployment figure. This suggests renewed economic optimism among less-skilled or less-educated workers.

The stunning data released by the BLS shows the unemployment rate among Hispanic-Americans aged 16 and up fell to 4.6%; down from 4.9% in May. While 12.4 percent is still high for this recovery, it is well below the rates of more than 14 percent seen the last time the unemployment rate was this low in 1999 and 2000.

The economy also faces a substantial threat from the trade tension with China and from other trade disputes with US allies, including Canada and Europe. And as is the case in most months, professional and business services as well as education and health services were the sectors that saw the largest increase in employment, with 50,000 and 54,000 jobs added in these sectors respectively. Average hourly earnings rose 2.7 percent year over year, slightly below expectations of a 2.8 percent increase.

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