Economy Watch: Economy Creates 220K Jobs in June

Economy Watch: Economy Creates 220K Jobs in June

Economy Watch: Economy Creates 220K Jobs in June

Economists were expecting there to be 178,000 jobs added to the economy in June while the unemployment rate was set to remain at 4.3%, a post-financial crisis low.

The government also revised up its estimate of job growth for April and May by a combined 47,000.

Analysts predict that the government's jobs report, to be released today, will show 179,000 jobs were added last month, according to data provider FactSet. Health care posted the biggest job gain - 59,100 - despite uncertainty around health care legislation in Congress. Governments added an unusually high 35,000 positions, almost all of them at the local level. The unemployment rate on Inauguration Day was 4.8%, and it has fallen since then, to 4.4% in June.

"While the unemployment rates for workers of colour remain far higher than for white non-Hispanic workers, the black unemployment rate has been falling faster than overall unemployment over the a year ago", she said in a statement. Thursday's private-sector jobs report from ADP and Moody's Analytics found that the USA added a fewer-than-expected 158,000 in June, and that goods-producing jobs were essentially flat.

The jobless rate rose because more Americans began looking for work and not all of them found it.

And auto sales are slowing from last year's record pace, causing some automakers to cut jobs.

The change in total nonfarm payroll employment for April was revised up from +174,000 to +207,000; and the change for May was revised up from +138,000 to +152,000. Employment growth has averaged 180,000 per month thus far this year, in line with the average monthly gain of 187,000 in 2016.

"After last month's surge in jobs activity, small-business owners seem to be in a holding pattern while they wait to see what Congress will do with taxes and healthcare", NFIB President and CEO Juanita Duggan said.

The result came after several months in which other economic data suggested the world's largest economy could be starting to lose steam.

During the presidential campaign, Trump criticized the declining unemployment rate (it had been 10 percent in October 2009) as not reflecting the true state of the economy.

"It's a good report for the economy", said John Silvia, chief economist at Wells Fargo.

Millions of those Americans have gained full-time jobs in the past eight years, but in many cases at much lower pay.

The "real" unemployment rate, otherwise known as the U-6 measure, was 8.4 percent in May, which increased to 8.6 percent in June.

In a written statement, Labor Secretary Alexander Acosta called the job creation numbers "robust".

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