Business hiring forges ahead in June, with 213,000 jobs added

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The U.S. economy added 213,000 jobs in June, cueing to the growth momentum employers are capitalizing on, despite mounting concerns of a potential global trade war.

The unemployment rate, which is calculated from a separate survey, rose from an 18-year low of 3.8% to 4% as 600,000 Americans, including many discouraged workers on the sidelines, streamed into a favorable job market, the Labor Department said Friday.

The Labor Department said that average hourly earnings rose five cents, or 0.2% in June after increasing 0.3% in May.

June was a record 93rd straight month in which private-sector employers hired more people than they fired or laid off.

USA hiring topped forecasts in June while unemployment rose from an 18-year low and wage gains unexpectedly slowed, indicating the labor market has room to keep expanding.

Missouri landed the very worst spot on the list due to the double-whammy of offering half the time (13 weeks) to collect unemployment insurance that most states get, along with suffering the eighth-lowest employment growth (-0.38 percent) in the nation.

The details across industries showed continued strength in goods-producing jobs: Manufacturing added 36,000 to payrolls, the best month since December, including a 12,000 increase in the auto industry, the most since August.

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"It's not your father's labor market anymore", said Diane Swonk, chief economist at Grant Thornton. This extra labour supply has seemingly helped keep wage growth in check.

Still, if the additional jobs and that sort of wage growth don't make you smile, the rising unemployment rate should.

Rather than being an omen of bad things to come, the rise suggests a positive outlook for the U.S. economy as it coincides with more than 600,000 people entering the labor force.

It would also be important to watch secondary indicators of employment that are not as impressive as the headline unemployment rate, such as the share of people who are working part-time but would prefer full-time jobs. Unemployment figures don't include jobless people not in the labor force, or those who haven't sought a job over the previous four weeks.

But that is good news for the Federal Reserve since they will not feel pressure to raise interest rates faster.

The employment increase last month beat economist expectations for a 20,000 gain and was the second highest so far in a year where job creation has been sluggish.

Youth unemployment increased to 11.7 per cent last month, up from 11.1 in May. Before joining The Washington Post, she was a senior economics reporter at CNN and a columnist and deputy editor at the Patriot-News in Harrisburg, Pa. It has declined three-tenths of a percentage point this year and is near the Fed's estimate of 3.6 percent by the end of this year.

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