Published: Sat, July 08, 2017
Finance | By Laverne Griffith

Labor Market Bouncing Back as Construction adds 16000 Jobs in June

Labor Market Bouncing Back as Construction adds 16000 Jobs in June

The construction sector added 16,000 jobs, and the unemployment rate increased from 4.3% to 4.4%.

The job gains have encouraged more people to start looking for work, and this was behind a slight increase in the unemployment rate to 4.4% in June from 4.3% in May.

"That participation rate has the room to go up several percentage points", Johns Hopkins University economist Robert Barbera said. And the nation's unemployment rate remained relatively steady at 4.4 percent, down about 0.4 percent from what it was in January. When the unemployment rate begins to plateau, that may suggest that the economy is running short of excess workers, and that wage gains and inflation are on the way.

It is also important to note that automakers often shut down assembly plants for a bit of annual planning during the beginning of July and this tends to increase unemployment claims a bit.

On the bright side, women are coming back to the job market.

Among the marginally attached, there were 514,000 discouraged workers in June, little different from a year earlier. In addition to the normal falloff in participation seen in other recessions, the depth and severity of the Great Recession pushed millions of Americans to the sidelines, discouraging them from even looking for work. From May to June, the number of those in the labor force grew from 159,784,000 to 160,145,000.

Total Nonfarm payrolls, a measure of the number of USA workers in the economy. Job gains have now averaged almost 180,000 a month this year, only slightly below last year's pace.

Diane Swonk, the founder of Chicago-based DS Economics, told The New York Times she contributes the slower hiring pace to uncertainty around the future of health insurance coverage.

Labor Market Bouncing Back as Construction adds 16000 Jobs in June

The U.S. economy is forecast to have added 177,000 jobs in June, according to economists surveyed by FactSet, up from about 138,000 jobs added in May.

Employment in financial activities rose by 17,000 in June and has grown by 169,000 over the year. Securities, commodity contracts, and investments added 5,000 jobs over the month.

In June this May this rate fell to 8.4%, the lowest reading since June 2007. Since a recent employment low in October 2016, mining has added 56,000 jobs.

Retailers hired 8,100 workers, a surprise respite for a sector which had shed employment for four straight months.

This has been a tough year for the retail industry.

The Labor Department also said average hourly employee earnings rose by 0.2% to USD26.25.

The average hourly wage rose by 2.5 percent. For the year to date, the economy has added +1,079,000 new jobs meaning that the average job creation number for the year to date stands at 179,834 (rounded).

Total nonfarm payroll employment increased by 222,000 in June. Monthly revisions result from additional reports received from businesses and government agencies since the last published estimates and from the recalculation of seasonal factors. (Usually, the two tend to move in opposite directions.) There has been a general return of volatility to the stock market after months of steady, incremental gains.

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