Connect with us

Hi, what are you looking for?

World

U.S. job growth accelerates, economy adds 850K jobs in June – National

U.S. job growth accelerates, economy adds 850K jobs in June – National

U.S. job growth accelerated in June as companies, desperate to boost production and services amid booming demand, raised wages and offered incentives to draw millions of reluctant unemployed Americans back into the labor force.

Nonfarm payrolls increased by 850,000 jobs last month after rising 583,000 in May, the Labor Department said in its closely watched employment report on Friday. The unemployment rate rose to 5.9% from 5.8% in May.

Read more:
130 countries back global minimum corporate tax of 15%

The jobless rate has been understated by people misclassifying themselves as being “employed but absent from work.” There are a record 9.3 million job openings. Economists polled by Reuters had forecast payrolls advancing by 700,000 jobs last month and the unemployment rate dipping to 5.7%.


Click to play video: 'Canada, U.S., Mexico looking to strengthen, rebuild economies as trade partners: Ng'







Canada, U.S., Mexico looking to strengthen, rebuild economies as trade partners: Ng


Canada, U.S., Mexico looking to strengthen, rebuild economies as trade partners: Ng – May 18, 2021

Average hourly earnings rose 0.3% last month after increasing 0.4% in May. That raised the year-on-year increase in wages to 3.6% from 1.9% in May. Annual wage growth was in part flattered by so-called base effects following a big drop last June.

Story continues below advertisement

The report suggested the economy closed the second quarter with strong growth momentum, following a reopening made possible by vaccinations against COVID-19. More than 150 million people are fully immunized, leading to pandemic-related restrictions on businesses and mask mandates being lifted.

Read more:
‘Half of restaurants still at risk’: Small businesses warn Ottawa despite new hiring subsidy

Politicians, businesses and some economists have blamed enhanced unemployment benefits, including a $300 weekly check from the government, for the labor crunch. Lack of affordable child care and fears of contracting the coronavirus have also been blamed for keeping workers, mostly women, at home.

There have also been pandemic-related retirements as well as career changes. Economists generally expect the labor supply squeeze to ease in the fall as schools reopen and the government-funded unemployment benefits lapse but caution many unemployed will probably never return to work.


Click to play video: 'Biden unveils key points in his economic American Jobs Plan'







Biden unveils key points in his economic American Jobs Plan


Biden unveils key points in his economic American Jobs Plan – Mar 31, 2021

Record-high stock prices and surging home values have also encouraged early retirements.

Story continues below advertisement

According to job search engine Indeed, 4.1% of jobs postings advertised hiring incentives through the seven days ending June 18, more than double the 1.8% share in the week ending July 1, 2020. The incentives, which included signing bonuses, retention bonuses or one-time cash payments on being hired, ranged from as low as $100 to as high as $30,000 in the month ended June 18.

Read more:
COVID-19: Manitoba offers wage subsidy to encourage hiring vaccinated employees

Some restaurant jobs are paying as much as $27 per hour plus tips, according to postings on Poachedjobs.com, a national job board for the restaurant/hospitality industry. The federal minimum wage is $7.25 per hour, but is higher in some states.

With employment not expected to return to its pre-pandemic level until sometime in 2022, rising wages are unlikely to worry Federal Reserve officials even as inflation is heating up because of supply constraints. Fed Chair Jerome Powell has repeatedly stated he expects high inflation will be transitory.

The U.S. central bank last month opened talks on how to end its crisis-era massive bond-buying




You May Also Like

World

France, which has opened its borders to Canadian tourists, is eager to see Canada reopen to the French. The Canadian border remains closed...

Health

Kashechewan First Nation in northern Ontario is experiencing a “deepening state of emergency” as a result of surging COVID-19 cases in the community...

World

The virus that causes COVID-19 could have started spreading in China as early as October 2019, two months before the first case was identified in the central city of Wuhan, a new study...

World

April Ross and Alix Klineman won the first Olympic gold medal for the United States in women’s beach volleyball since 2012 on Friday,...