Recruitment in the United States rebounded in August when employers added a strong 201,000 jobs, a sign of confidence that consumers and businesses will continue to spend despite the Trump administration's constant conflicts with its business partners.
The unemployment rate remained at 3.9 percent, close to a minimum of 18 years.
The August jobs report also showed that paychecks are growing faster. Average hourly wages are now 2.9 percent higher than the previous year, the highest gain year after year in eight years.
Even so, after adjusting inflation, the salary has not been constant during the past year.
This July 25, 2018 photo shows a sign of help requested at a new Zaxby & # 39; s restaurant in Madison, Mississippi. On Friday, September 7, the Labor Department reports job offers and job rotation for August. (AP Photo / Rogelio V. Solis)
Taken together, the data point to a labor market that remains resilient even after nearly a decade of economic expansion and even with the threat of tariffs and against tariffs on imports and exports that hover over many US employers who depend on world trade.
The economy is constantly expanding, driven by tax cuts, confident consumers, increased commercial investment in equipment and more government spending. Growth reached 4.2 percent at an annual rate in the April-June quarter, the fastest pace in four years.
Even as it reported a strong job increase for August on Friday, the Labor Department abruptly revised its hiring estimate in June and July. The government now says that employers added 50,000 fewer jobs in those two combined months than they had previously estimated.
But the solid 201,000 increase in employment for August was almost equal to the average increase of 196,000 in the previous 12 months, evidence of how steady job growth remains.
The Trump administration has imposed tariffs on imported steel and aluminum, as well as on products from China worth 50,000 million dollars. US companies in a wide range of industries have expressed alarm over import taxes and tariffs that other countries have imposed on US exports. UU
The White House has also threatened to hit China with higher taxes on $ 200 billion more Chinese products.
However, up to now, those concerns do not seem to have depressed general hiring. Companies are increasingly reluctant to fire workers, in part because it would be difficult to replace them at a time when skilled job seekers have become harder to find. On Thursday, the government said the number of people seeking unemployment benefits – an indicator of layoffs – amounted to just 203,000 last week, the lowest total in 49 years.
Friday's job report showed that professional and commercial services, a category that includes both the highest-paying fields such as engineering and accounting and temporary lower-wage jobs, led August's job growth with 53,000 additional jobs.
Health care providers added 33,000 and transport and storage companies 20,200, the largest amount in almost a year.
The manufacturing industry eliminated 3,000 jobs in August, its worst performance in more than a year. Retailers cut 6,000 jobs, a surprising drop given strong sales reports from leading retailers such as Target, Walmart and Best Buy.
Most analysts have predicted that the economy will expand at an annual rate of at least 3 percent in the current July-September quarter.
For the entire year, the economy is on track to grow 3 percent for the first time since 2005.
Consumer confidence rose in August to its highest level in almost 18 years. Most Americans feel that jobs are widely available and expect the economy to stay healthy in the coming months, according to the Conference Board consumer confidence survey.
The upbeat mood is to raise expenses on everything from cars to restaurant meals and clothes. Consumer enthusiasm is even driving physical retail chains such as Target, Walmart and Best Buy, which have posted strong sales gains despite the increasing competition from online retailers.
In August, factories expanded at their fastest pace in 14 years, according to a survey of purchasing managers. A manufacturing index compiled by a trade group reached its highest point since 2004. Measures of new orders and production increased, and factories added jobs at a faster pace than in July.
Not all economic news has been positive. Higher mortgage rates and years of rapid price increases are slowing down the housing market. Sales of existing homes fell in July for the fourth consecutive month.
Many economists are also concerned that President Donald Trump will soon meet the threat of imposing tariffs of up to 25 percent on imports of China worth 200 billion dollars. That would be additional to $ 50 billion in taxes and taxes. That move could reduce growth by a quarter of a point over the next year, said Mark Zandi, chief economist at Moody's Analytics.