Economy Adds 213,000 Jobs in June, Unemployment Edges Up to 4 Percent

Here comes the jobs report...

Here comes the jobs report...

This month's Employment Situation Report from the Bureau of Labor Statistics showed strong job creation, but the unemployment rate rose 0.2% to 4.0%, in an unexpected result.

The report also shows that the share of workers who have multiple jobs remained stable over the previous year at 4.8 percent.

Job gains beat expectations in June as 213,000 jobs were added to the economy during the month, while the unemployment rate unexpectedly rose to 4%.

Still, average hourly pay rose just 2.7 per cent in June from 12 months earlier, meaning that after adjusting for inflation, wages remain almost flat.

The percentage of unemployment attributable to voluntary quits fell to 12.4 percent, more than reversing a big jump reported in May.

These people ultimately are classified as discouraged workers, who first fall down into a subset of the unemployment statistics (where the unemployment rate is now 7.8 percent in June compared with 7.6 percent in May) until they ultimately disappear completely from the workforce.

With a record 6.7 million unfilled jobs in April, economists are optimistic that wage growth will accelerate later this year.

London continues to fare better than Kitchener-Waterloo, where the unemployment rate rose to six per cent last month, and Windsor, where it was 5.8 per cent. Experts predict the move even though the economy is facing significant uncertainty from Canada's intensifying trade dispute with the United States as well as growing fears of a global trade war.

The broader US economy appears sturdy.

The goods-producing sector added 46,600 positions in June thanks to job-creation boosts in construction, natural resources and manufacturing. The U.S. and China slapped tit-for-tat duties on $34 billion worth of the other's imports on Friday.

Yet the tax cuts have done little to generate substantial pay growth. There were increases in professional and business services employment as well as leisure and hospitality.

The June jobs report has a lot of rosy details in it.

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