Jul 7, 2017

Job growth soars in June, but wage growth still disappoints

Alan Diaz/AP

The U.S. economy added 222,000 jobs in June, while the unemployment rate rose slightly to 4.4%, as more Americans joined the labor force, the Bureau of Labor Statistics announced Friday. Economists were expecting 178,000 jobs and an unemployment rate of 4.3%.

The sectors adding the most jobs include health care and food services. Retail, which has been shedding jobs of late, added a modest 8,000 new jobs, while the mining-support sector added 7,000 new jobs.

Why it matters: The report will cause consternation at the Federal Reserve, as it showed little acceleration in wage growth. As University of Michigan economist Justin Wolfers puts it:

Without rising worker pay, there's little reason to expect the Fed will aggressively raise interest rates to beat back inflation. At the same time, some Fed members are worried that keeping interest rates unusually low is causing investors to take on too much risk.

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The big picture: Floyd's death in Minneapolis police custody is the latest reminder of the disparities between black and white communities in the U.S. and comes as African Americans grapple with higher death rates from the coronavirus and higher unemployment from trying to stem its spread.

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U.S. cities crack down on protesters

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Major U.S. cities have implemented curfews and called on National Guard to mobilize as thousands of demonstrators gather across the nation to continue protesting the death of George Floyd.

The state of play: Hundreds have already been arrested as tensions continue to rise between protesters and local governments. Protesters are setting police cars on fire as freeways remain blocked and windows are shattered, per the Washington Post. Law enforcement officials are using tear gas and rubber bullets to try to disperse crowds and send protesters home.

Trump to invite Russia and other non-member G7 countries to summit

President Trump at Cape Canaveral, Florida, on Saturday. Photo: Saul Martinez/Getty Images

President Trump told reporters on Saturday evening he would postpone the G7 summit to September and expand the meeting to more nations that are not members of the Group of 7.

Details: Trump said he would invite Russia, South Korea, Australia and India to the summit, according to a pool report. "I don’t feel that as a G7 it properly represents what’s going on in the world. It’s a very outdated group of countries," he said.