Why higher unemployment signals a strengthening economy

Why higher unemployment signals a strengthening economy

The job market is so good, many people who had previously given up looking are starting again. The EPOP for prime-age workers (ages 25 to 54) edged up to 79.3 percent, tying the high for the recovery reached in February. With 93 straight months of job growth - a historical record - many employers have said they're feeling pressure to raise wages.

The annual increase in average hourly earnings remained unchanged at 2.7%.

"Overall the report is good news insofar as it suggests the economy still has some capacity to grow at an above-trend pace without generating much inflationary pressure", said Michael Feroli, an economist at JPMorgan in NY.

The job gains in the establishment survey were broadly based. Manufacturing led the way with an increase of 36,000 jobs, 12,000 of which were in autos.

Manufacturing has been one of President Trump's main areas of focus, and the administration's pro-business policies have had a direct impact on growth.

UFC 226: History on the line in main event
I'm not going to reinvent the wheel nine years into my career. "I'm a grinder, and that's what I'm going to do to Stipe". The Olympic wrestler most recently stopped Volkan Oezdemir in January to set up the heavyweight superfight.

U.S. service member killed in apparent insider attack in Afghanistan
The incident marks the first combat fatality for the USA military in Afghanistan since April 30, and the second there this year. Officials said the incident is being investigated, and no further details were immediately available.

Russian Federation v Croatia quarter-final
The return of Alan Dzagoev should give them a bit more creativity in the middle of the pitch. 100 - Goal! Russia 1, Croatia 2. Modic will have to show leadership in Sochi if Croatia is to make it to the semi-finals for the second time in their history.

Health care added 25,200 jobs, nearly exactly in line with its average over the a year ago. The magic of rounding off decimal points (from 3.75 percent in May up to 3.8 percent; and from 4.05 percent in June down to 4.0 percent) made the increase in the jobless rate look smaller than it actually was. This may be due to erratic seasonal factors. Stocks on Wall Street were trading higher, with the S&P 500 and the Nasdaq indexes touching two-week highs. Nonetheless the EPOP for men is still 0.9 percentage points above its year-ago level, compared with 0.7 percentage points for women.

In a note to clients ahead of the report, Spencer Hill, an economist at Goldman Sachs, said he expected the unemployment rate will fall to 3.7% after being rounded down, a level that would send the headline unemployment rate to its lowest level since 1969. The number of people involuntarily working part-time fell by 205,000, hitting a new low for the recovery. It is now back to prerecession lows measured as a share of employment. "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".

The dollar extended losses against the euro and the yen after the employment report.

Under Trump, the economy also saw its highest number of job openings - 6.6 million, about the number of unemployed in April - since 2000. Retail sales jumped a strong 0.8 per cent in May in a sign that consumers feel secure enough to spend. It is now unchanged for the previous year, half a percentage point above its prerecession level. The rate has hovered at, or just above 60% since January.

The US economy keeps adding jobs at a blistering pace. Support our work with a donation now!

Related news:

Hot News

isis-killer-beheading-video-story-top Marcus Smart 'Hurt and Disgusted' That Celtics Haven't Contacted Him
Jul 08, 2018 - 06:28
Apparently, president Danny Ainge is yet to reach out to Smart and his representatives and it's angered the player. But now, as the clock ticks on his restricted free agency, Smart isn't feeling the love from Boston.

isis-killer-beheading-video-story-top Bystanders push subway train to free trapped woman
Jul 08, 2018 - 06:01
The first story was a tweet from Boston Globe reporter Maria Cramer, who was there to witness the aftermath. The incident has since gone viral, for reasons that tell two different stories about America in 2018.

isis-killer-beheading-video-story-top England to face Croatia in semi-finals
Jul 08, 2018 - 05:59
It was a sign of what was to come - direct balls, long throws, pressing - but those basic tactics didn't trouble England . This was England's most complete performance of Russian Federation 2018 in what was a highly-credible team effort.

Chrissy Teigen slams Trump over Elizabeth Warren, #MeToo comments
Jul 08, 2018 - 05:46
At a rally in Montana , Mr Trump mocked those who had called on him to apologise for comments made about Warren. They always want me to apologize for saying it and I hereby - oh, no, I want to apologize and I'll use tonight".

isis-killer-beheading-video-story-top Coach of Thai boys trapped in cave offers apology to parents
Jul 08, 2018 - 05:46
It is only a small battle we've won, but the war has not ended. "We are still at war with water and time", Osottanakorn also said. I promise I will take care of the children the best I can. "Thank you for all the moral support and I apologise to the parents".

isis-killer-beheading-video-story-top Veterans speak out about the U.S. Army discharging immigrant recruits
Jul 08, 2018 - 05:42
Stock, who does not represent Calixto, said soldiers told her the Pentagon had not been able to do an extensive background check. Rob Manning said military officials were also considering several additional military installations to assist HHS efforts.

isis-killer-beheading-video-story-top Croatia end Russian Cup dream in dramatic shootout
Jul 08, 2018 - 05:12
Both goalkeepers made early saves in the shootout, with an injured Danijel Subasic stopping the opening shot from Fyodor Smolov. The game went to extra-time with Subasic staying on the pitch despite appearing to injure his hamstring late on in normal time.

isis-killer-beheading-video-story-top Dershowitz Mocked For Criticizing Anti-Trump 'McCarthyism' On Martha's Vineyard
Jul 08, 2018 - 03:45
Today everyone is talking about Alan Dershowitz's article in the Hill complaining that he has been socially banned on Martha's Vineyard because of his advocacy for Donald Trump.

isis-killer-beheading-video-story-top Manafort Held in Solitary Confinement 23 Hours a Day
Jul 08, 2018 - 03:24
Manafort is one of four Trump campaign or White House aides to have been charged in Mueller's investigation. The lawyers said his detention makes it "effectively impossible" for Manafort to prepare for trial.

isis-killer-beheading-video-story-top Nadal Breezes Through To Wimbledon Second Round
Jul 08, 2018 - 01:33
Despite entering the action without having played any warmup tournaments on grass, Nadal appeared right at home in London. He is the third top 10 man to lose in the first round after sixth seed Grigor Dimitrov and 10th seeded David Goffin .

isis-killer-beheading-video-story-top New wildfires sweep through California, burning homes
Jul 08, 2018 - 01:29
North-northwest winds were blowing the embers and flames from the house fire downhill, toward downtown Goleta , Zaniboni said. The areas of concern include the Pacific Crest Trail, Mount Ashland and the Cascade-Siskiyou National Monument.

isis-killer-beheading-video-story-top One death reported in latest Nicaraguan violence
Jul 08, 2018 - 01:23
The 2012 Magnitsky Act allows USA officials to freeze the assets and ban U.S.travel for designated human-rights abusers or those engaging in corruption.

isis-killer-beheading-video-story-top Croatia hold their nerve to beat Russia on penalties
Jul 08, 2018 - 01:11
In the last 16 Croatia had beaten Denmark on spot kicks and Russian Federation beat Spain by the same method. Akinfeev levelled things up at 1-1 when he dived the right way to keep out Kovacic after two penalties each.

isis-killer-beheading-video-story-top Trump’s Mar-a-Lago wants to hire 61 foreign workers
Jul 08, 2018 - 00:41
Donald Trump wants to hire 61 people from overseas to come and work as waiters and cooks at his luxury Mar-a-Lago resort. Trump's "Winter White House" has applied to hire 21 cooks from other countries to work at the resort from October to May.

isis-killer-beheading-video-story-top England sink Sweden to clinch World Cup semi-final berth
Jul 08, 2018 - 00:33
The Everton shot-stopper thrust out a hand to superbly keep out Claesson's low strike from 10 yards following a neat lay-off by Berg.