USA adds 213K jobs in June; unemployment up to 4%

Naugatuck Connecticut. Across America towns and cities will be remembering those who lost their lives while serving in the United States Armed

Companies in the USA added fewer workers in June than forecast as a tight and still-solid labor market led to a slower pace of hiring, according to data released Thursday from the ADP Research Institute in Roseland, New Jersey. (ADP) and forecasting firm Moody's Analytics.

There may be a bit of a more muted expectations for Friday's key payrolls and unemployment report from the U.S. Department of Labor. The category, which includes computer systems designers, engineers, consultants and administrative staff, added 50,000 jobs during a robust month of hiring. With 93 straight months of job growth - a historical record - many employers have said they're feeling pressure to raise wages.

Meantime, American workers are quitting at rates not seen since the dot-com era, according to a story in the Wall Street Journal, which cited government data as showing 3.4 million quit their jobs in April, close to a 2001 peak and double the 1.7 million workers given pink slips during the month. That relatively modest increase means that, after adjusting for inflation, overall wages remain almost flat.

Average hourly pay rose just 2.7 percent in June from 12 months earlier.

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The medium-sized businesses (50 to 499 employees) led the gains at 89,000 jobs added in June, and large business (500 and more employees) added 69,000 jobs.

Under the service sector, the education and health services industry dominated, adding 46,000 new positions, while the leisure and hospitality industry, and professional and business services industry, both added 33,000. At the current pace of job growth, if sustained, this problem is set to get much worse.

Steady gains in employment are helping underpin consumer spending and lift economic growth even as uncertainty surrounding import tariffs poses a risk to the outlook for businesses. A widespread availability of jobs and the prospect of higher wages at other employers made it harder to retain workers, she said. Still, economists say they think the low unemployment rate will eventually force more employers to offer higher pay in order to fill jobs. While nonfarm payrolls measure the full picture, the government's report on private sector payrolls in May grew by 218,000 in the preliminary report.

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