The US economy has created more jobs than expected in June

July 7, 2018 12:47 pmComments Off on The US economy has created more jobs than expected in JuneViews: 44

jobs USAThe US unemployment rate in June stepped back from the 18-year low reached in May, while the new jobs rising more than expected, which is a signal to accelerate the growth of the world’s leading economy in the second quarter. The labor (excluding the agriculture sector) increased in June by 213,000 jobs, with the average earnings expectations on the financial markets slightly more modest by around 195,000, according to data from the Ministry of Labor. At the same time, the data for the previous two months underwent an upward revision of a total of 37,000, with April revisions up to 175,000 (previous estimate of 155,000), and those for May to 244,000 (a previous estimate of their growth of 223,000).

In the first six months of this year, 215,000 new jobs were created on average, which is above their average monthly growth of 182,000 in the past year, when the US economy managed to generate 2.173 million new jobs, reported the Labor Ministry.

Today’s data is another proof that 2018 will be the 8th consecutive year with an employment growth of at least 2 million. This would only be the second such period since the 1990s, when the world’s leading economy managed to create so many jobs for a longer period.

However, the unemployment rate rose surprisingly to 4%, while the average expectations of the financial markets were stabilizing at its 18-year low of 3.8% in May (the lowest unemployment rate in the US since April 2000, as lower levels were recorded for the last time in 1969).

It should be borne in mind that the proportion of Americans seeking employment or so-called the “employment rate” rose to 62.9% in June from 62.7% in May, but still remains close to the 40-year low of 62.3% reached in September 2015. The rise in unemployment is mainly due to the fact that in June more than 600,000 Americans became part of the labor force in the country (especially with a view to the end of the school year) and some of them failed to find a job.

In June, 213,000 jobs were created in the private sector of the US economy, 11,000 in the public sector, while employment in the industrial sector grew by 35,000 and the construction sector by 13,000.

Average hourly labor costs in the United States increased by 0.05 USD in June, or 0.2% month-on-month, reaching 26.98 USD per hour. On an annual basis, the growth in average labor remuneration stabilized at 2.7%, but on an increase of 2.8%. The average working week in June also remained unchanged at 34.5 hours.

The latest data will probably not change the Federal Reserve’s policy of gradually tightening interest rates and expecting two more interest-rate hikes by the end of the year.

The Labor Ministry data also support forecasts for accelerating economic growth in the US in the second quarter, with the GDP expected to grow between April and June by more than 4% on annual basis, duplicating the weaker 2-fold expansion one hundred at the beginning of the year.

Comments are closed