Canada adds 31,800 jobs in June

Canada adds 31,800 jobs in June

Still, Satyam Panday of S&P Global Ratings summarized the view of economists that "Despite simmering trade tensions, hiring in the United States continues to stay strong". But for now the sector, which accounts for about 12 percent of the USA economy, appears in good health. At the same time, more people entered the labour force to look for work, helping push the unemployment rate up for the first time in nearly a year. The concern is that a tit-for-tat escalation of tariffs will be increasingly damaging for activity, hurting sentiment and leading to a slower pace of growth in capital expenditure and job creation.

The labor force participation rate also went up by 0.2 percent to the current 62.9 percent after 601,000 joined the civilian labor force. The increase is above the gains required for the accommodation of the population growth and about 20,000 more compared to last year's average during the same period.

Still, if the additional jobs and that sort of wage growth don't make you smile, the rising unemployment rate should. The Fed's preferred inflation measure hit its 2% target in May for the first time in six years.

Remaining slack in the job market could be keeping a lid on wage growth, said Cathy Barerra, chief economist at ZipRecruiter.

Private employment rose by 202,000 (median estimate 190,000) after increasing 239,000; government payrolls rose by 11,000, most since August. "However, the ongoing trade war with China and our allies could hurt investment spending and hold back job and wage gains".

The dollar extended losses against the euro and the yen after the employment report. Prices for longer-dated U.S. Treasuries rose. The Wall Street Journal credited new manufacturing with the positive news.

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While the unemployment rate slightly increased in June, the number of employed Americans increased to a record high.

America's labour market boomed again last month, strengthening the case for the Federal Reserve to raise interest rates twice more this year. Unemployment figures don't include jobless people not in the labor force, or those who haven't sought a job over the previous four weeks. Most economists say they still think the low unemployment rate will eventually force more employers to offer higher pay in order to fill jobs.

Wage growth continues to be sluggish: Not all the June data were encouraging. "Unequivocally, this is a nightmare situation".

DePratto stressed he didn't see anything in the jobs report to deter Poloz from hiking the rate next week.

Service providers boosted payrolls by 149,000, led by a 54,000 gain in education and health services, and 50,000 in professional and business services.

Automakers added 12,000 jobs in June, but adverse trade developments could deflate the gain. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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