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article imageProfessional and business services lead U.S. jobs growth

By Tim Sandle     Jul 6, 2019 in Business
The U.S. labor market has shown an upswing, based on the latest data released for June 2019. Fueling the growth curve are new positions in professional and business services, followed by healthcare, transportation and warehousing.
Positive news for labor market in the U.S. Data reveals more jobs were filled than expected, based on analysis from the U.S. Bureau of Labor Statistics. Total non-farm payroll employment rose by 224,000 in June. However, the unemployment rate was little changed, standing at 3.7 percent. Importantly, the jobs gain rate stands above the 100,000 jobs per month needed to keep up with growth in the working-age population.
While jobs rates are growing, averaging at 172,000 per month so far this year, the growth rate is lower when compared with the typical monthly gain seen during 2018, which was 223,000. Nevertheless, there has been 18 months of steady jobs growth. The major gains were with professional and business services, which added 51,000 jobs in June; this was followed by healthcare, which increased by 35,000 over June 2019 and has risen by 403,000 over the past 12 months. The main source is coming from care homes, followed by hospitals.
Another growth area is with transportation and warehousing. These sectors added 24,000 jobs during June and 158,000 in total over the year-to-date. Biggest growth was among the gig economy, with couriers and messengers rising fastest. This was followed by work in air transportation. Another sector seeing a reasonably large rise was construction, picking up 21,000 jobs.
Sectors where there was either minimal growth or no growth are: mining, wholesale trade, retail trade, information, financial activities, leisure and hospitality, and government.
While job shave increased, wages have not risen in line with inflation. Wage growth for June was pegged at 0.2 percent overall. This ties the annual wage rate increase at 3.1 percent.
Discussing the figures with the BBC, Luke Bartholomew, who is an investment strategist at Aberdeen Standard Investments, said: ""Employment growth remains a bright spot amid a fairly mixed bag of US data and yet markets have come to expect a cut now so will fall out of bed if they don't get one."
The big issue facing the U.S. now is if, or perhaps rather when, an interest rate cut will be enacted by the Federal Reserve. Over this, economists, along with the U.S. President, have mixed views.
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