And yet hiring is expected to be strong for June.
USA economist at UniCredit Research in NY.
Economists had forecast that June would be another strong month for the US labor market, with nonfarm payrolls expected to have grown by 195,000 during the month with the unemployment rate expected to hold steady at an 18-year low of 3.8%, according to estimates compiled by Bloomberg.
Manufacturers added 36,000 jobs last month.
The labour force expanded by 75,600 in June, the biggest one-month increase in six years, Statistics Canada reported Friday from Ottawa. A separate measure, average hourly earnings for production and nonsupervisory workers, also increased 2.7 percent from a year earlier, unchanged from the prior month's gain. That marks a 72 cent increase for average hourly earnings over the year so far.
In spite of the strong job gains and widely voiced complaints from employers about difficulties in finding workers, wage growth does not appear to be accelerating.
Wage growth is barely keeping ahead of inflation, which is firming up as the economy strengthens.
The Fed raised its target range for the benchmark federal funds rate in June for the second time this year, and penciled in two more rate hikes in the second half of the year.
Most economists agreed the uptick in the unemployment rate is the result of volatile figures used in the calculations.
Some companies will likely respond to the tariffs by putting their hiring plans on hold until the trade picture becomes clearer.
The dollar fell to a three-week low against a basket of currencies on the employment report. USA stock index futures were little changed. The Wall Street Journal credited new manufacturing with the positive news.
Job gains beat expectations in June as 213,000 jobs were added to the economy during the month, while the unemployment rate unexpectedly rose to 4%. But the Trump administration's "America First" trade policy, which has left the United States on the brink of trade wars with other major economies poses a risk to the labor market and economy. Unemployment figures don't include jobless people not in the labor force, or those who haven't sought a job over the previous four weeks.
Gross domestic product estimates for the April-June period are above a 4 percent annualized rate, double the 2.0 percent pace logged in the first quarter. "Unequivocally, this is a nightmare situation".
The report said most of the job growth occurred in professional and business services, manufacturing and healthcare - while retail trade lost jobs.
DePratto stressed he didn't see anything in the jobs report to deter Poloz from hiking the rate next week.
The United States has increased jobs monthly for more than seven years, but some analysts suggest that the escalating trade disputes between the USA and its allies could threaten growth.
The June jobs report is out and it's a beat. Restaurants added 16,400 jobs in June, under the average of 18,400 over the year. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.