Latest
Recommended
Published: Tue, July 12, 2016
Economy | By Melissa Porter

Jobs roar back with gain of 287000 in June

Jobs roar back with gain of 287000 in June

USA private companies added nearly 300,000 jobs in June, indicating that employment growth was strong.

The Labor Department revised down May's already weak first estimate of 38,000 jobs to just 11,000. However, weak numbers from April and May mean it's still the case that job gains over the past three months have averaged about 147,000, lower than the 200,000 we have become accustomed to in the last couple of years of the economic recovery.

Job growth came mostly from retailers, health care and social assistance providers, and the large restaurant and recreation industry.

It's a massive rebound from May when the US added a mere 38,000 jobs.

The return of 35,100 Verizon telecoms workers boosted information sector employment last month.

However, the unemployment rate rose to 4.9% in June from 4.7% in May, more than the expected rate of 4.8%.

Compared to the same month a year ago, average hourly earnings have risen by 2.6 percent, reflecting the strongest wage growth this year.

After the report's release Friday, stock futures surged, the dollar soared, and Treasurys fell. Average hourly earnings were up 2.6% over the 12 months ending in June. Most industries added jobs.

United States bond yields, which had plunged in recent weeks with the 10-year Treasury hitting a record low, spiked higher in early trade.

"Today's report helps the case for more Fed tightening before too long - if strength is sustained - although officials are being ultra cautious amidst turmoil in global markets", he said on Friday. Manufacturing employment increased 14,000 last month after shedding 16,000 jobs in May, according to the government data.

USA stocks rallied on the employment data, with the main indexes rising more than 1 percent.

Analysts remained cautious over what the hiring surge means for the economy going ahead, saying U.S. businesses could remain cautious in the coming months, concerned about the possible economic drag from Britain's vote to withdraw from the European Union, expected to hit economic growth in Britain and Europe. And there were 219,800 (17.8%) more trucking jobs in May than were reported in March 2010, the low point in the economic downturn. Taken together with other growth figures this year, the newly released job data indicate that us economy is expanding steadily, though not surging, as the labor market gradually moves closer to a full recovery from the recession. Labor Secretary Thomas Perez said in an interview that is what is expected as the jobs market fully heals. Mining is the only sector that's still struggling: 211,000 mining jobs have been lost since September 2014, largely because of super cheap gas prices.

Like this: