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WASHINGTON – US employers should have maintained their steady recruitment pace in June, reflecting the sustainability of the second-longest US economic expansion ever recorded. 39, a trade war with China.
Economists estimated that 195,000 jobs were added last month and that the unemployment rate remained at an 18.8% low of 3.8%, according to data provider FactSet. If, however, the unemployment rate reached 3.7% or less in June, it would mark its lowest level since December 1969, when it was 3.5%.
The Labor Department 's monthly employment report will be released at 8:30 am Eastern time. Friday.
The broader US economy appears to be on solid ground. Economists predict that economic growth will accelerate at an annual rate of about 4% during the quarter from April to June, about double the pace of the previous quarter.
The signs of economic strength helped to hire despite the difficulties faced by many employers.
According to recent surveys, manufacturers and service companies reported that their business was improving despite anxiety over the tariff confrontation between the United States and China. Housing starts climbed 11% so far this year. Retail sales jumped 0.8% in May, a sign that consumers feel safe enough to spend.
But while economic growth seems solid, the gains have been unequally distributed. President Donald Trump's tax cuts have provided a boost of stimulation this year, even though it has been heavily geared towards individuals and wealthy businesses. The savings achieved through tax cuts have allowed companies in the Standard & Poor 's 500 Index to buy back a record number of shares in the first three months of 2018. [19659011] Yet, tax cuts have done little to generate substantial wage growth. After adjusting for inflation, the Ministry of Labor reported last month that wages have been essentially stable for a year. Still, economists say that they think the low unemployment rate will eventually force more employers to offer higher wages in order to fill jobs.
The economy is also facing a map in tariffs imposed on China. Friday, the Trump administration begins to tax 34 billion dollars of Chinese imports at a rate of 25%. China has promised retaliatory tariffs of the same magnitude. Any escalation in the trade dispute could disrupt hiring as companies face higher prices.
The commercial clash with China is also not an isolated skirmish. The Trump administration has imposed tariffs on steel and aluminum on allies like Canada and Mexico and has threatened to abandon the North American Free Trade Agreement. American with these two countries. Trump also talked about tariffs on imported cars, trucks and auto parts, which, according to General Motors, could hurt the US auto industry and push up car prices.
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