We need to add at least 232,000 jobs per month over the next year to lower the unemployment rate to 4 percent and bring another million workers back in from the sidelines. The strong payrolls data also helped counter yesterday’s slightly disappointing jobless claims figures from ADP. The figures are provisional and could be revised.
Job growth in the first half of 2017, while only down by 2,000 from 2016, was the smallest gain to start the year since 2010.
Financial activities employment rose by 17,000 jobs in June and has grown by 169,000 jobs over the year.
Still, he said, “the continued vitality in the United States labor market means that the Fed is on track to begin shrinking its balance sheet in September and to raise rates again in December”. “A tight labor market will lead to greater wage growth”.
The president has focused on manufacturing jobs, a sector that has seen steady growth since his election.
Despite the uptick in legal industry jobs reported on Friday, the past several months have seen some turbulence in employment at large law firms.
The economy grew at just a 1.4 percent annual rate in the first three months of the year, below even the sluggish 2 percent average pace in the eight years since the recession ended.
That’s because there’s still a large pool of working-age Americans who want to work but have given up searching or who are working part time because they can not find full-time employment.
Nonfarm payrolls increased by 222,000 jobs, the DoL said.
“Economists have been long expecting stronger wage gains to emerge as the pool of unemployed dissipates and the competition for skilled labor heats up”.
One day after announcing that unemployment claims rose for the third straight week, the Labor Department announced that job growth surged past expectations in June. The report showed jobs growth slowed last month.
Economists responding to a Bloomberg survey predicted that the economy would add 170,000 jobs in June and ADP’s monthly forecast projected only 158,000 new jobs. Securities, commodity contracts and investments added 5,000 jobs over the month.
“With only one more rate hike expected this year, investors should turn their attention to the Fed, which will soon attempt to shrink its behemoth $4.5 trillion balance sheet”.
“We’ve been forecasting a slowdown, but it hasn’t materialized”, said Scott Anderson, chief economist at Bank of the West. In an economy that is growing robustly, wage growth is typically about 3.5%.