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Unemployment rate climbs to 4% in latest jobs report

EURUSD News by Newsroom on 08:58 July 06, 2018 EST

Nonfarm payroll employment increased by 213,000 in June but overall unemployment in the country rose 0.2 percent to 4 percent last month, according to the latest data from the U.S. Department of Labor’s Bureau of Labor Statistics.

The total number of unemployed people in the country increased by 499,000 to 6.6 million over the previous month. Employment is still better of where it was in June 2017 when the jobless rate was 4.3 percent and the number of unemployed was 7 million.

The real estate industry added 3,800 jobs according to the data while manufacturers stepped up hiring, but steady wage gains pointed to moderate inflation pressures that should keep the Federal Reserve on a path of gradual interest rate increases.

The unemployment rate rose to 4.0 percent from an 18-year low of 3.8 percent in June as more people entered the labor force in the sign of confidence in the jobs market. The labor force participation rate, or the proportion of working-age Americans who have a job or are looking for one, rose to 62.9 percent last month from 62.7 percent in May. It had declined for three straight months.

Average hourly earnings rose five cents, or 0.2 percent in June after increasing 0.3 percent in May. That kept the annual increase in average hourly earnings at 2.7 percent.

Dow Jones industrial average, S&P 500 index and Nasdaq 100 futures, under pressure as President Trump opened fire in his China trade war, turned positive on the jobs data. The 10-year Treasury yield ticked lower to 2.82% as the unemployment rate rose.