The economy has now been adding jobs for almost eight years - its longest streak on record.The U.S.is considered at near full employment, and the biggest challenge in the job market is the lack of available workers - a record 6.7 million jobs remain unfilled.
In April, there were up to 6.7 million job openings in the United States; the number was more than the people who were unemployed but were seeking unemployment. The U.S. central bank increased interest rates last month for the second time this year and has projected two more rate hikes by year end.
Nonetheless, an escalating trade war poses a clear threat.
"Combined with additional jobs and steady hours, payrolls are up by 5 percent since June 2017".
Despite a relatively tight labour market, wage growth remains stuck in the 2 per cent range, with the annual gain of 2.7 per cent unchanged from May.
The June jobs report is out and it's a beat. But significant pay gains have yet to emerge in the economic data.
DePratto stressed he didn't see anything in the jobs report to deter Poloz from hiking the rate next week. That said, this year's tally is still short of the totals from the first six months of 2014 and 2015. Construction continued to trend up last month, adding 13,000 jobs. Retailers cut 21,600 jobs last month, after boosting payrolls by 25,100 in May. But in Friday's revised figures, BLS reports that the legal services industry actually gained 300 jobs in May, compared with April. Over the past year, average monthly payroll gains have hovered around 200,000, and hiring has been running ahead of growth in the labor force.
The broader US economy appears to be on sturdy ground. An acceleration of this rate would show that employers are indeed paying up for the skilled workers who they say are in decreasing supply.
Manufacturers and services firms have said in recent surveys that their business is improving despite anxiety about the tariff showdown.
Asians increased by 3.2 percent. Retail sales jumped a strong 0.8 percent in May in a sign that consumers feel secure enough to spend. That risks weighing on economic growth and the pace of hiring and investment.
The previous record was 4.8% back in 1973. Trump has spoken about slapping tariffs on imported cars, trucks and auto parts, which General Motors has warned could hurt the US auto industry and drive up vehicle prices. Some of the sectors that contributed to the growth include manufacturing which powered the growth by adding 36,000 jobs. Over the past year, it has added more than a half-million jobs.
The public sector gained 11,800 jobs and the private sector lost 2,000. Prices for U.S. Treasuries rose.
This uptick in people joining the workforce - there were 601,000 new entrants to the labor force in June - pushed up the unemployment rate.