Booming US jobs market lifts chance of rate rise

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U.S. employers added a higher-than-expected 213,000 jobs last month, extending the USA economy's long-running growth streak.

Unemployment ticked up slightly to 4 percent as more people looked for work.

Average hourly earnings gained five cents, or 0.2 percent in June after increasing 0.3 percent in May.

Compared with a year earlier, overall employment was up 1.2 per cent following the creation of 214,900 jobs, which was driven by 284,100 new full-time positions. "Aside from the immediate job market impacts, the trade disputes risk raising prices for consumers hurting their purchasing power, which then reinforces the dampening impact on the job market", Hamrick added.

June was a record 93rd straight month in which private-sector employers hired more people than they fired or laid off.

The Hispanic-Latino unemployment rate was 5.9% in January of 2017, the month President Trump took office. Construction continued to trend up last month, adding 13,000 jobs. Wages missed forecasts, with the relatively tepid pace remaining a puzzle for economists. And as executives say they can not find enough qualified workers, many are turning to hiring people who are now incarcerated or people with disabilities.

The EPOP for Hispanics rose 0.4 percentage points to 63.4 percent, a new high for the recovery, while their unemployment rate fell to 4.6 percent, the lowest on record.

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"Job growth occurred in professional and business services, manufacturing, and health care, while retail trade lost jobs", reports the Labor Department in a written statement.

"Labor market fundamentals remain solid, with a meaningful pickup in service-sector employment surveys", Hill said.

At the same time, the latest report "probably places less pressure on the Fed to feel like they're behind the curve", Feroli said.

The number of employed people in the workforce rose by 102,000, while the number of unemployed jumped by 499,000, suggesting more people entered the labour force and actively sought jobs. That's an increase in total employment of a quarter of a million jobs.

Faster wage growth would also indicate that inflation is building in the economy, which hasn't been the case even though unemployment is this low.

In the past three months, the United States has increased 211,000 jobs monthly on average. So, taking this all together we have a U.S. economy growing at around 4% in the current quarter, that has an incredibly tight labour market with headline consumer price inflation potentially rising to 3% next week. "There were some people who weren't participating in the labor force who are now being encouraged to return, so I'm not concerned about the uptick in unemployment", said Catherine Barrera, chief economist of the online job site ZipRecruiter.