Unemployment Rate for College Dropouts Remains at 17-Year Low

Donald Trump

Unemployment Fell as Job Creation Slowed a Bit The Associated Press 3 Aug 2018

The unemployment rate for those without a high-school diploma fell to 5.1 percent, the lowest on record.

The unemployment rate came in at 3.9%, matching expectations and below June's 4%.

On Friday, China's Commerce Ministry said a new set of proposed import tariffs on $60 billion worth of United States goods are rational and restrained and warned that it reserves the right of further countermeasures in the intensifying trade war.

The U.S. unemployment rate dropped slightly in July, while job gains were lower than many analysts predicted. Overall, the US unemployment rate inched down to 3.9% in July, following an increase in June, with total employment increasing by 157,000 jobs. The White House has slapped tariffs on steel and aluminium and on $34 billion of imports from China, and several companies have hit USA imports with retaliatory duties.

Last month, Trump also saw a 4.1 percent GDP rate, the highest since 2014.

Employers added an average of 224,000 new workers in the first six months of this year, a faster pace than in 2017.

Gapen said he's optimistic that wage gains will pick up, ending the year at about a 3 percent increase. The economy created 59,000 more jobs in May and June than previously reported and needs to generate about 120,000 jobs per month to keep up with growth in the working-age population.

The data follow a factory survey earlier this week showing manufacturing growth cooled in July and executives were concerned about the impact of the trade war. It's been relatively flat for the past few years, as people return from the sidelines to find work while baby boomers retire and exert downward pressure on the measure. Faucher writes that as that happens, job growth will slow down because businesses will find it more hard to recruit new hires.

Peter Cramer of Prime Advisors says one reason wages are not growing faster is the large but shrinking pool of part-time workers who are getting longer hours or full-time work. The unemployment rate had ticked up in June as the healthy jobs market attracted more workers back into the labor force.

Following this latest solid jobs report, it remains likely that the US Federal Reserve will hike interest rates two more times in 2018.

"Congress and the administration have taken important steps in recent weeks to tackle this challenge, but this jobs report is a reminder that more work needs to be done through partnerships with the private sector to solve the workforce crisis", she said.

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