Trump blow as jobless numbers in the US rise

UNEMPLOYMENT in the US rose to 4pc last month in a blow to Donald Trump.

Official figures showed the jobless rate ticked up from an 18-year low of 3.8pc. The increase was put down to more people looking for work rather than job losses. The report showed the number of people in work actually rose by 213,000 as companies took on new staff, particularly manufacturers. However, unemployment rose as the proportion of working age Americans who are looking for a job increased.

Analysts said together with a second quarter rebound in GDP growth, the figures paved the way for the Federal Reserve to raise interest rates twice this year. The Fed has raised rates seven times in recent years from close to zero to between 1.75 and 2pc.

Andrew Hunter, US economist at Capital Economics, said: ‘The solid 213,000 gain in payrolls in June, which followed an even stronger 244,000 rise in May, illustrates that labour market conditions remain unusually strong.

‘Admittedly, the jobless rate did rebound to 4pc, but that was only due to a 601,000 surge in the labour force, which outweighed a more modest rise in employment.’