U.S. employers added 224,000 jobs in June, and the unemployment rate edged up to 3.7 percent, the U.S. Bureau of Labor Statistics reported Friday.
Last year, Fed officials raised rates four times, in part to stave off the risk of high inflation and in part to try to ensure that they would have room to cut rates if the economy stumbled. Social assistance added 15,600 jobs, slightly above its average of 11,300 over the past year.
Trump on Friday said the robust employment gains indicated the United States continued to do "really, really well" and "would be like a rocket ship", if the Fed lowered rates.
Much of the story is the loss of unionized jobs in the sector, with nearly 40 percent disappearing as a result of the explosion in the trade deficit from 2000 to 2007.
The company expects to make an operating profit of $5.6 billion for the three months ended June, down from $12.7 billion in the same quarter a year ago.
The faster job growth in the establishment survey should reduce fears about a substantial slowing or a recession. Economists were predicting 3,000 jobs added in the sector. The U.S. added 102,000 private payrolls in June, while consensus estimates were for 140,000 positions. In June, job growth took place among couriers and messengers, with 7,000 added, and air transportation, with 3,000 added.
The labor force participation rate, or the proportion of working-age Americans who have a job or are looking for one, rose to 62.9% last month from 62.8% in May. The development relieved some pressure on the market, though the trade war still looms over global economic growth.
A rate cut would be the Fed's first in more than a decade.
Surveys released this week showed that trade battles are creating a drag not only on US factories, but also the much larger services sector of the economy. The June jobs report also reflects a rebound in job growth, suggesting that May's revised outcome (+72K) was not a trend (see figure).
At the end of the month the Federal Reserve will hold its next meeting of policymakers, after which the panel will reveal whether it has made a decision to cut rates for the first time since the Great Recession in 2008 in the face of slowing economic momentum around the world.
The sluggish pace of hiring in May had signalled that employers might have grown more cautious because of global economic weakness and, perhaps, some difficulty in finding enough qualified workers at the wages that companies are willing to pay.
"That's good for consumer spending", House said, which is a major pillar of the USA economy.
Professional and business services: The industry added 51,000 jobs in June, following measly growth in May of 24,000.