USA adds a solid 213000 jobs; unemployment up to 4 percent

Economy adds 213K jobs in June unemployment ticks up to 4 percent

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When the Labor Department's unemployment reports come out Friday morning, economists estimate it will show about 195,000 jobs were added last month, and that the unemployment rate held at 3.8 percent - its lowest level since 2000.

The manufacturing sector, a target of Trump's "Make America Great Again" agenda, added 36,000 jobs in June, just the latest of a series of good news stories about the industry.

Unemployment rate rises for an encouraging reason: workers are confident they can find a new job in today's economy.

Canada received a dose of new jobs last month, maintained sturdy wage growth and saw more people searching for work - all seen as positives by experts who believe the path is clear for the central bank to raise interest rates next week.

The change in total nonfarm payroll employment for April was revised up from 159,000 to 175,000, and the change for May was revised from a gain of 223,000 to 244,000. The labor force participation rate, or the number of people who are actively employed or looking for work, rose to 62.9% from 62.7%. Hispanic unemployment fell to a record low of 4.6 percent in June, and unemployment remains near record lows for African Americans and for Americans with less than a high school degree.

The data also shows a modest hourly compensation hike of 2.7 percent last month, compared to a year earlier.

Minutes of the Fed's June 12-13 policy meeting published on Thursday offered an upbeat assessment of the labor market.

Faster wage growth would have also indicated that inflation was building in the economy, which hasn't strongly been the case even though unemployment is low.

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The broader US economy appears sturdy.

Signs of strength have helped bolster hiring despite the difficulty many employers say they're having in finding enough qualified workers to fill jobs.

The economy also faces a substantial threat from the Trump administration's trade war with China and from other, ongoing trade disputes with USA allies, including Canada and Europe.

The slow growth in labor costs may dissuade the Federal Reserve from raising interest rates more aggressively to head off a spike in inflation.

"Three of the five states that ranked the worst in this study (Missouri, Alaska, and Kansas) have all experienced a decrease in employment growth over the previous year", a GOBankingRates.com representative told Moneyish.

Manufacturers are expected to have added another 15,000 jobs to their payrolls in June on top of the 18,000 created in May.

The look ahead: "Ignore the uptick in the unemployment rate that stems from the rising labor force". Economists say the effects could include companies freezing future investment and potentially additional hiring, which would eventually have a cooling effect on the jobs figures in coming months.

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