The U.S. economy added 224,000 jobs in June, surging past expectations and helping ease fears about the nation’s economic health in the midst of President Trump’s trade war.
The unemployment rate inched up, to 3.7 percent, the U.S. Labor Department said Friday, but it remains near a half-century low. The rate increased because more Americans entered the labor force, meaning they found jobs or are actively searching for one again.
The strong jobs numbers were double expectations from an ADP employment report released earlier in the week, that suggested a slowdown.
The Associated Press reported job gains were distributed broadly throughout the economy.
Job growth strengthened in nearly all major industry sectors in June, with notable jumps in government, business services, education and health.
Education and health services led the way with 61,000 jobs, accounting for more than a quarter of overall gains during the month. The growth was driven largely by employers at hospitals, medical clinics, home health services, nursing care facilities and day care centers.
“Recession concerns are overblown,” said Gus Faucher, chief economist at PNC Financial Services. “There’s no indication the labor market is in trouble or the broader U.S. economy.”
… many economists, including at the Fed, believe this year will be slower than last and that Trump’s trade war has spooked businesses. Corporate confidence has fallen sharply in recent weeks as business leaders complain about a lack of certainty, especially with the tariffs on Chinese imports. The worry is that business will pull back on hiring and investment, although there is not much sign of that on the hiring front.
The state budget was built on high expectations for continued economic growth. Let’s hope it continues.