220000 jobs added to US Labor Market in June


The economy is in pretty good shape, according to last month's labor statistics.

June's legal employment numbers-which take account of lawyers, paralegals and legal secretaries, among other occupations-come on the heels of job gains in the industry in April and May. The labour force participation rate increased to 62.8 per cent from 62.7 per cent in the previous month, though that is still near the lowest level in more than three decades.

The temp penetration rate - temp jobs as a percent of total employment - rose to a record-high 2.070% in June from 2.064% in May.

However, the U.S. unemployment rate ticked higher to 4.4 per cent, from 4.3 per cent previously, and earnings were up only 2.5 per cent year on year, slightly lower than expected.

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.

The better-than-expected job data provided further evidence that the economy was in better shape in the second quarter, compared to the lackluster first quarter.

But it's close, and a stronger than expected report on June job growth pulled Trump closer to his predecessor.

In a June 29, 2017 update, the Congressional Budget Office said it expects the US labor market to tighten in the next two years, as greater demand for workers will push the unemployment rate down and the labor force participation rate up.

Solid employment growth and a tightening labor market are likely to support household spending moving forward, according to The Conference Board. The wider transportation and warehousing sector added 2,400 jobs, due mainly to gains in couriers/messengers and passenger transportation.

In addition, the year-over-year growth rate in temp jobs was 4.74% in June, down from 4.94% in May but still the largest second-largest year-over-year growth rate since June 2015. Consider this: In 2015, the US added 200,000 or more jobs a month nine times. Since the start of the year, the number of long-term unemployed people has decreased by 322,000. Thursday's private-sector jobs report from ADP and Moody's Analytics found that the US added a fewer-than-expected 158,000 in June, and that goods-producing jobs were essentially flat.

While job growth picked up, economists see more room for improvement in wages and participation in the workforce, which have been slow to keep pace.

Since the start of the year, the unemployment rate has fallen by 0.4 percent and the number of people who are unemployed has fallen by 658,000, the Labor Department said.

The report revised May's comparatively sombre report, adding a net 47,000 jobs to the totals for that month and to April.

The pace of job gains remains relatively strong, almost seven years into the current economic expansion.

A low unemployment rate often causes wages to increase with workers having more job prospects to choose from.

The Labor Department also said average hourly employee earnings rose by 0.2% to USD26.25. Mark Zandi, chief economist of Moody's Analytics, said: "The job market continues to power forward". Employment in the professional and business services sector rose by 35,000. Last month, 1.6 million people were marginally attached to the labor force, down by 197,000 from a year earlier.