Page 25 - ARUBA TODAY

BUSINESS Saturday 7 July 2018
A25

US adds a solid 213,000 jobs; unemployment up to 4 pct.

By JOSH BOAK, unevenly. President Donald
WASHINGTON (AP) — U.S. Trump's tax cuts have pro-
employers kept up a brisk vided a dose of stimulus this
hiring pace in June by add- year, but the benefits have
ing 213,000 jobs, a sign of been tilted significantly to-
confidence in the econ- ward wealthy individuals
omy despite the start of a and corporations. Savings
potentially punishing trade from the tax cuts enabled
war with China. companies in the Standard
The job growth wasn't & Poor's 500 stock index to
enough to keep the unem- buy back a record number
ployment rate from rising of shares in the first three
from 3.8 percent to 4 per- months of 2018.
cent, the government said Yet the tax cuts have done
Friday. But the rate rose for little to generate substan-
an encouraging reason: tial pay growth. Most econ-
More people felt it was a omists say they still think the
good time to begin looking low unemployment rate will
for a job, though not all of eventually force more em-
them immediately found ployers to offer higher pay
one. in order to fill jobs.
The growing optimism that The economy also faces a
people can find work sug- substantial threat from the
gested that the 9-year old trade tension with China
U.S. economic expansion and from other trade dis-
— the second-longest on putes with U.S. allies, includ-
record — has the momen- ing Canada and Europe.
tum to keep chugging Any escalation in the con-
along. Yet its path ahead is flict with China could dis-
uncertain. Just hours before rupt hiring as companies
the monthly jobs report was grapple with higher import
released, the Trump admin- prices and diminished de-
istration imposed taxes on mand for their exports. On
$34 billion in Chinese im- Thursday, Trump floated
ports, and Beijing hit back the prospect of imposing
with tariffs on the same tariffs on more than $500
amount of U.S. goods. billion in Chinese imports.
"The tariffs jumble things The Trump administration
about what we should ex- In this Thursday, June 21, 2018 photo, a job applicant looks at job listings for the Riverside Hotel at has also applied tariffs on
pect to see in the next few a job fair hosted by Job News South Florida, in Sunrise, Fla. steel and aluminum from
months," said Cathy Bar- Associated Press allies like Canada and Mex-
rera, chief economist at ico and has threatened to
ZipRecruiter, the online jobs from 12 months earlier. area, said she raised pay The broader U.S. economy abandon the North Ameri-
marketplace. That relatively modest in- last month to $13 an hour appears sturdy. Econo- can Free Trade Agree-
Some companies will likely crease means that, after from $11.50. A widespread mists are forecasting that ment. Trump has spoken
respond to the tariffs by adjusting for inflation, over- availability of jobs and the economic growth accel- about slapping tariffs on
putting their hiring plans on all wages remain nearly prospect of higher wages erated to an annual pace imported cars, trucks and
hold until the trade picture flat. But the average was at other employers made of roughly 4 percent dur- auto parts, which General
becomes clearer. skewed downward in June it harder to retain workers, ing the April-June quarter, Motors has warned could
Major U.S. stock indexes because the job seekers she said. about double the previous hurt the U.S. auto industry
were mostly higher Friday were mainly those with only "In the past six months, peo- quarter's pace. and drive up car prices.
after the jobs report was is- a high school education ple were just leaving right Signs of strength have Automakers added 12,000
sued, keeping the market or less, who are generally and left," she said. "We've helped bolster hiring de- jobs in June.q
on track for a weekly gain paid lower wages, Barrera seen that happen at an spite the difficulty many
after two weeks of losses. noted. alarming rate." employers say they're hav-
The June jobs data showed The ranks of unemployed Manufacturers added ing in finding enough quali-
an economy that may be people seeking jobs 36,000 jobs last month. The fied workers to fill jobs.
on the cusp of produc- jumped by 499,000 in June, education and health sec- Manufacturers and ser-
ing stronger pay growth, which caused the unem- tor added 54,000. But retail- vices firms have said in
something that could be ployment rate to rise from ers shed 21,600 jobs, with recent surveys that their
disrupted if additional tar- its previous 18 year-low. the losses concentrated business is improving de-
iffs are imposed. Trump With 93 straight months of at general merchandise spite anxiety about the
has suggested that more job growth — a historical stores. tariff showdown. Housing
than $500 billion worth of record — many employers In its report Friday, the gov- starts have climbed 11 per-
Chinese imports could be have said they're feeling ernment revised up its esti- cent so far this year. Retail
taxed in his drive to force pressure to raise wages. But mate of job growth in May sales jumped a strong 0.8
Beijing to reform its trade significant pay gains have and April by a combined percent in May in a sign
policies, which he insists yet to emerge in the eco- 37,000. Over the past three that consumers feel secure
have unfairly victimized the nomic data. months, the economy has enough to spend.
United States. Mara Fortin, who owns produced a robust aver- Though economic growth
Average hourly pay rose seven Nothing Bundt Cake age monthly job gain of appears to be solid, the
just 2.7 percent in June stores in the San Diego 211,000. gains have been spread