Canada adds 31,800 jobs in June, led by jump in part-time positions

Nancy Pelosi gavel

Nancy Pelosi gavel

USA employers kept up a brisk hiring pace in June by adding 213,000 jobs, a sign of confidence in the economy despite the start of a potentially punishing trade war with China.

"Let's remember that for some time, the unemployment rate has been below the level typically associated with 'full employment, ' but the relatively robust level of hiring being seen suggests there's more room" for the jobless rate to drop, he added. Even so, a steady pace of hiring and gradually rising wages, along with lower taxes, are helping underpin consumer spending and propelling a rebound in US growth.

"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", she said. Moreover, some of the other internals, including a rising unemployment rate for African-Americans, highlighted the challenges to more inclusive growth.

On Friday, the world witnessed the imposition of new tariffs by the U.S. and China on goods worth $34bn from each of the two countries. But for now the sector, which accounts for about 12 percent of the US economy, appears in good health.

While economists say the tax cuts are boosting growth this year, they warn that Trump's actions on trade could have damaging impacts on the economy and jobs.

Meanwhile, the revisions for the two previous months - April and May - looked encouraging, with a combined gain of 37,000 jobs as compared to previous BLS reports.

All told, employers added 213,000 jobs in June.

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Just hours before the monthly reports came out, the Trump administration imposed tariffs on $34 billion worth of Chinese imports, prompting the Asian country to immediately reiterate.

The economy needs to create roughly 120,000 jobs per month to keep up with growth in the working-age population. "The unchanged 2.7 percent rise in June helps keep the Fed on a gradual path of rate hikes", MarketWatch said. Average hourly earnings advanced 2.7 per cent from a year earlier, while the jobless rate increased to 4 per cent from 3.8 per cent, the first rise in nearly a year.

Manufacturers added 36,000 jobs last month.

"This report was more than enough to seal the deal on a July rate hike from the Bank of Canada", said Frances Donald, a senior economist with Manulife Asset Management.

Youth unemployment increased to 11.7 per cent last month, up from 11.1 in May. The Federal Reserve on Thursday reported some businesses had already scaled back or postponed planned investment due to the trade struggles, and warned that many more promise to do more if the spats continue to escalate.

Overall, U.S. employers added 213,000 jobs in June.

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