The U.S. economy added 209,000 jobs in July, as the jobless rate dipped, revisiting a 16-year low of 4.3%, the Labor Department reported on Friday. The unemployment rate rose a tick from 4.3 to 4.4 percent, largely because the labor force grew by 361,000; the labor force participation rate also rose a tick to 62.8 percent. There are still people who should be in the work force who aren't, and that drag is holding down wage growth because of the impact that sidelined labor has on pricing.
Broad-based increases in the minimum wage across many states in the beginning of the year could have attracted more workers to industries paying lower wages, resulting in an acceleration of job growth in these sectors, according to an analysis from Bloomberg Intelligence. Statistics Canada says the rate for the economic region that houses Grande Prairie and Peace River was 5.8 per cent in July 2017, down from 7.8 per cent in July 2016.
Average hourly earnings for all private-sector workers rose by 9 cents in July to $26.36.
Additionally, 1.6 million people were considered marginally attached to the labor force; they are unemployed but want and are available to work, and had looked for a job sometime in the previous 12 months.
The US economy created more jobs than expected in July helping to send the unemployment rate lower once again, sharpening expectations of faster monetary tightening by the American central bank. Complaints about a lack of skilled workers continue, even as employers remain reluctant to raise wages in an effort to attract more employees. The national unemployment rate fell to 4.3%, staying within a 10 basis point range in the last four months.
On the other hand, staffing company Robert Half International (RHI), which serves accounting, health care and other professions, has seen temp bill rates decelerate to 2.5%. However, we need to have sustained 300K growth over several months to get wages to rise organically.
With the labor market continuing to make steady improvements, talk has cropped up about the economy approaching full employment - but that's far from the case for teenagers.
However, that number is offset by a gain of 23-hundred part-time positions.
However, despite the strong job market, the growth in American paychecks remains anemic. "Are we going to see more wages increase for USA workers?"
One question raised by the long lines at Amazon's job fairs is the extent to which the job candidates are now employed and looking for higher pay.