Published by compdiskinc on July 7, 2017

U.S. job growth seen accelerating; unemployment rate steady

U.S. job growth seen accelerating; unemployment rate steady

US employers probably increased hiring in June and rising wages for workers, signs of the strength of the labor market that could hold the Federal Reserve during the third rise in interest rates this year.

According to a Reuters poll of economists, the Employment Report noted Friday by the Labor Department will likely show that non-farm wages increased by 179,000 jobs last month after gaining 138,000 in May.

The unemployment rate is expected to reach a 16-year threshold of 4.3 percent. It fell five-tenths of a percentage point this year and is the median of the Fed’s most recent forecasts for 2017.

Economists estimate that the dynamism of the labor market may also encourage the central bank of the United States to announce plans to begin reducing its good portfolio of US $ 4.2 trillion Treasury and mortgage-backed securities in September.

“The June employment report could provide sufficient evidence for Fed officials that they are still willing to follow the monetary policy normalization plans in the second half,” said Sam Bullard, senior securities economist at Wells Fargo in Charlotte , North Carolina.

The Fed raised its benchmark interest rate in June for the second time this year. But with inflation shrinking below the Central Bank’s 2% target in May, economists are expecting another rate hike in December.

Job earnings forecast in June would be close to the monthly average of 186,000 by 2016 and reinforce viewpoints that the economy has regained its speed in the second quarter after slow performance at the start of the year.

But the rate of employment growth should slow down when the labor market reaches full employment. There is growing anecdotal evidence of companies looking to find skilled workers.

As a result, some companies raise wages in order to attract and retain their workforce. Economists expect the growing shortage of workers in wage growth, which has remained stubbornly slow despite the tightening of the labor market.

EYES ON SALARIES

Average hourly earnings are up 0.3% in June after gaining 0.2% in May. This could increase the annual salary increase of 2.7% compared with 2.5% in May.

“The month-by-month days of 200,000 jobs created are probably behind us,” said Ryan Sweet, an economist at Moody’s Analytics in West Chester, Pennsylvania.

“We see that the trend of growth in employment continues to moderate. This does not necessarily mean that expansion is running out of juice or a recession is imminent, it’s just a symptom of a full-time economy.”

The economy must create 75,000 to 100,000 jobs a month to control the growth of the working-age population.

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Republican President Donald Trump, who inherited a strong labor market from the Obama administration, is committed to strongly stimulating economic growth and further strengthening the labor market by reducing taxes and reducing regulations.

But Republicans have struggled with health legislation and are also concerned that political scandals could derail the Trump administration’s economic agenda.

Employment increases are likely in June. Manufacturing wages have probably recovered after the plants have lost 1,000 jobs in May. However, employment in the automotive sector has probably more gradually declined as the slowing of sales and swollen inventories force manufacturers to reduce production.

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