Job growth beats expectations days before Bank of Canada rate decision

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USA employers likely maintained a brisk pace of hiring in June while increasing wages for workers, which would reinforce expectations of robust economic growth in the second quarter and allow the Federal Reserve to continue raising interest rates. They had expected that the unemployment rate held steady at 3.8%, its lowest level since 2000. Normally, a tight labor market encourages employers to pay more to attract and retain workers.

Average hourly earnings rose by 5 cents, or 0.2%, to $26.98, lower than market expectations for a 0.3% improvement.

"As the labor market tightens we should see more businesses raisings wages, offering training, and hiring workers from all corners of the labor market", she added. "Clearly there are some sectors like trucking where wages are going up, but warehousing wages really collapsed and are only now just $12 or $13 an hour". The Wall Street Journal credited new manufacturing with the positive news. The figures for the previous two months were also revised higher.

The June jobs report is out and it's a beat. As executives say they can not find enough qualified workers, some are turning to hiring people who are incarcerated or people with disabilities. It was "general merchandise stores, including warehouse clubs and supercenters" that initiated the big cuts, -18,000 jobs.

For decades, the country had suffered from a shrinking labor force as many Americans, especially men, gave up on looking for jobs. "This combined with labor force unemployment rates being among the lowest in the US results in western states ranking so well".

Trump frequently touts the strong jobs picture as hiring has picked up in recent months.

Dropping from its previous record of 4.8 percent from October of 2006, Hispanic unemployment now sits at 4.6 percent for the month.

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The report underscores a familiar refrain: There are lots of jobs being created, but not enough people to fill them. "If this doesn't stop, manufacturing will take a hit".

Yet the monthly figures landed the same day as President Donald Trump intensified a global trade war with United States levies on US$34 billion (RM137.36 billion) of Chinese goods, spurring retaliatory tariffs.

Major trade partners, including China, Canada, Mexico and the European Union, have retaliated with their own tariffs.

The surge in construction wages lost a little momentum in June.

The economy also faces a substantial threat from the trade tension with China and from other trade disputes with US allies, including Canada and Europe.

But that is good news for the Federal Reserve since they will not feel pressure to raise interest rates faster.

In a separate report Friday, Statistics Canada said the country's merchandise trade deficit with the world widened in May to almost $2.8 billion. She also worked at an investment firm in London.

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