Economy

U.S. adds 224000 jobs in June, allays fears of slowdown

U.S. adds 224000 jobs in June, allays fears of slowdown

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.

It was also a rebound from the relatively modest number of jobs created in May.

The pullback by treasuries came in reaction to the release of a closely watched Labor Department report showing a substantial reacceleration in the pace of USA job growth in the month of June. May's initially reported growth of 75,000 had raised doubts about the durability of the record-setting expansion that began a decade ago. Wage growth remains strong, at above 3% year-over-year, for the 11th month in a row, as a tight labor market forces employers to share the wealth generated by solid Trump-era GDP growth. That's similar to the pace of hiring in the first three months of the year, but reflects a slowdown from the end of 2018, when monthly job gains averaged 233,000. For the private sector, nonfarm payrolls added 191,000 in June following a gain of 83,000 in May.

Average hourly earnings rose 6 cents to $27.90 after a 9-cent increase in May. The unemployment rate ticked up to 3.7 percent as more workers stepped off the sidelines to enter the labor force.

"If we had a Fed that would lower interest rates, we would be like a rocket ship", he told reporters at the White House.

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Although there is a hiring spree, this job report could complicate a decision that the Federal Reserve will have to make on whether to cut interest rates that will help support the economy.

The trend in wage growth has slowed from late previous year when wages were rising at their fastest rate in a decade, pointing to moderate inflation.

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 in its semi-annual report to Congress on Friday repeated its pledge to "act as appropriate" to sustain economic growth. Parcel companies led the way among carriers during the month, adding 6,500 workers in June.

The June jobs report may dampen expectations that the Federal Reserve will slash rates by 50 basis points at its next policysetting meeting.

"Net, net, the great American jobs machine restarts its engines after the cautious hiring seen a month ago caused by the escalation in the trade war and rocky financial markets", Mitsubishi UFJ's Chris Rupkey wrote Friday morning. The Fed's statement came in its semiannual report on monetary policy. Health care added 35,000 jobs; transportation and housing gained 24,000 job; and construction increased by 21,000 jobs.