Jobs Report: What to Watch For

Jobs Report: What to Watch For

Marvin Loh, senior global markets strategist at BNY Mellon in Boston, pointed out that hourly earnings' 2.5 percent gain from a year earlier were "disappointing", with growth slower than at the start of the year and mostly stagnant over the past several months. The level of jobs growth this year has been a bit softer than the average we saw in 2016 (187,000), but I look forward to more months like June.

The national unemployment rate was 4.4 percent last month, with the largest increases in jobs coming out of the health care, social assistance, finance and mining industries.

The number of Americans not participating in the labor force declined from 94,983,000 in May to 94,813,000 in June. In the first six months of this year, hiring has averaged almost 180,000 jobs a month.

After release of the jobs data, USA short-term interest rate futures showed continued bets the Fed would raise interest rates in December.

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. Over the past three months, job gains have averaged 194,000 per month.

Markets and economists were also keeping an eye on the underemployment rate, which includes not only those unemployed but workers are employed part-time but would like full-time work.

Employment has been trending upward in some of the biggest sources of employment, like the education, health services and business services sectors.

Alexandre Lacazette: Arsenal in negotiations to sign French striker from Lyon
Arsenal have been linked with a long-held interest in Lacazette, with the striker known to be considering leaving the club. Lyon are still keen on signing Gunners' forward Olivier Giroud , who was expected to a makeweight in a Lacazette transfer.

The Federal Reserve voted to raise its benchmark interest rate by a quarter of a point from 1 percent to 1.25 percent in June.

Data junkies, here's your fix: the June U-6 (the broadest measure of unemployment) rose slightly by 0.2 to 8.6 percent due to the rise in the core unemployment rate and bump up in those marginally attached to the labor force.

April's nonfarm payrolls were revised up to 207,000 and May's tally up to 152,000, a net increase of 47,000. The labor force participation rate rose slightly to 62.8 percent percentage points and the employment-to-population ratio also rose slightly to 60.1 percentage points.

This has been a tough year for the retail industry. The report has beaten the expectations of economists for a 179,000 gain.

The average hourly earnings now stand at $26.25.

Economists say when hiring steps up, employers usually have to raise wages to attract and retain the best workers.Many companies complain they cannot get all the technically-skilled workers they need.But so far, overall wages have grown little.

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