US Employers Added 224,000 Jobs in June, Surpassing Expectations
WASHINGTON – U.S. employers dramatically ramped up their hiring in June, adding 224,000 jobs and far surpassing economists’ expectations that were closer to 165,000 jobs would be added, the Labor Department reported Friday.
The new numbers are particularly good news after a lackluster 72,000 jobs were added to the economy in May.
The question now is whether the Federal Reserve will move forward with an anticipated cut in interest rates later this month, or if the new jobs numbers suggest enough of a healthy bounce in the economy to put off a rate cut indefinitely.
Gad Levanon, chief economist for North America at The Conference Board, a nonpartisan think tank, said while employment growth in 2019 is clearly slower than in 2018, the change is modest thus far.
“Today’s report reduces concerns about a more significant slowdown in the US economy,” Levanon said. “The manufacturing sector added 17,000 jobs in June, after essentially no growth in the previous three months. Encouragingly, the number of jobs in the temporary help industry, one of the best leading indicators of employment, is growing again in the second quarter, after dropping in the first quarter.
“We expect the US economy to continue to grow slightly above its long-term two percent trend through at least the end of the year, generating enough job growth to continue tightening the labor market. In such a scenario, the need to cut the Federal Funds rate would lessen, Levanon added.
The job gains touched nearly every segment of the economy. Construction companies added 21,000 workers after having increased their payrolls by only 5,000 in May.
Manufacturers hired 17,000, up from just 3,000 in May. Health care and social assistance added 50,500 jobs. Hiring by transportation and warehousing companies increased 23,900.
The government sector was a major source of hiring, adding 33,000 jobs in June. Almost all those gains were at the local level.
The unemployment rate ticked up to 3.7% in June from 3.6% for the previous two months, reflecting an influx of people seeking jobs who were initially counted as unemployed.
Average hourly wages rose 3.1% from a year ago.
In The News
WASHINGTON - Back home in South Carolina after a mid-week trip to New Hampshire, former Rep. Mark Sanford said Friday he was pleased with how things went in the Granite State and his decision on whether to mount a primary challenge against President Trump will be... Read More
WASHINGTON - Representatives John Katko and Anthony Brindisi have launched a bipartisan effort to hold the international commission that manages outflows from Lake Ontario accountable for recent historic flooding. Katko, a Republican, and Brindisi, a Democrat, have gotten the Government Accountability Office, a nonpartisan group that... Read More
WASHINGTON -- After days of growing indications the U.S. may lapse into a recession before the 2020 election, the Trump administration announced Tuesday that it is delaying some of the additional tariffs it planned to impose on Chinese goods on Sept. 1. The announcement, which was... Read More
Freshman Representative Chrissy Houlahan, D-Penn., was joined by Representative Troy Balderson, R-Ohio, to introduce bipartisan and bicameral legislation to enhance commercialization services for federally funded research and development. Introduced in the House on July 18, H.R. 3839, the Research Advancing to Market Production (RAMP) for Innovators... Read More
WASHINGTON — The U.S.-China trade war took a dangerous turn for the worse Monday as Beijing allowed its currency to weaken and said it was halting new American farm purchases, sending U.S. stocks in a tailspin and heightening risks of a global economic downturn. The Chinese... Read More
WASHINGTON — The Federal Reserve on Wednesday cut interest rates for the first time since the Great Recession in 2008, a risky move that clashes with its historical practice of taking such a step only when the economy is in real trouble. The small, quarter-point reduction... Read More