Unemployment rate rises to 4%; US economy adds 213,000 jobs

Posted at 7:31 AM, Jul 06, 2018
and last updated 2018-07-06 09:31:45-04

By Nathaniel Meyersohn, CNN Money

The US economy just keeps cranking out jobs.

Businesses added 213,000 jobs in June, another strong month of gains. Employers kept hiring even as fears grew of a global trade war. The economy has added jobs every month for almost eight years.

The unemployment rate inched up to 4%, the first increase in almost a year. But even that reflected a healthy economy: It rose because more than 200,000 Americans re-entered the job market, looking for work.

They shouldn’t have much trouble finding a job: There are more job openings right now than unemployed workers.

About one in five small business owners say finding qualified workers is their biggest business problem, according to the National Federation of Independent Business.

“Right now, more firms are looking for workers than workers looking for a job,” said NFIB chief economist Bill Dunkelberg.

Although wages grew 2.7% in June from a year ago, they didn’t change much from May and came in below economists’ expectations. Normally, a tight labor market encourages employers to pay more to attract and retain workers.

Wage growth is barely keeping ahead of inflation, which is firming up as the economy strengthens.