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Published: Sat, July 09, 2016
Economy | By Melissa Porter

US Economy Adds 287000 Jobs In June, Exceeding Expectations


The broadly positive jobs report suggests that the USA economy was improving before the United Kingdom startled the world late last month by voting to leave the European Union.

Leisure and hospitality added 59,000 jobs in June, following little employment change in the prior month. The June jobs report showed that the Verizon workers were added back to information-sector payrolls.

Yields rose Thursday from near record lows as reports showed applications for unemployment benefits fell to the lowest since April and private payrolls rose more than forecast. The government estimates the labor market in June held almost 7.8 million Americans without a job who had actively looked for work in recent weeks - almost 350,000 more than the month prior.

Employment in professional and business services continued to trend up in June (+38,000).

Average hourly wages rose 0.1% to $25.61 in June.

Manufacturing employment increased by 14,000 for the month with construction jobs unchanged for the month, while there were gains in most service-sector categories following the disappointing data last month.

The BLS defines the "foreign-born" as "those residing in the United States who were not US citizens at birth". If these one-off factors are ruled out, it still shows the U.S. jobs market ticking higher at a far slower rate than the past five years, where jobs growth averaged over 200,000 per month. Friday's Labor Department figures suggest that the US economy, which has defied overseas weakness before, might be able to do so again.

US market futures jumped on the report. But in this environment, with this jobs report, hyper-scrutiny may be warranted. Over the year, average hourly earnings have risen by 2.6 percent. Despite the positive jobs figure, traders don't think it will alter the assumption in financial markets that the Federal Reserve won't be raising interest rates anytime soon.

Nonfarm payrolls increased by 287,000 jobs last month, the largest gain since last October, the Labor Department said on Friday.

The broadly positive report suggests the USA economy was improving before Britain shook the world last month by voting to leave the European Union. The U.S. was routinely adding well over 200,000 jobs a month.

Policy makers' median forecast calls for one hike in 2016, after officials this year twice lowered their projected path for interest rates. The labor force participation rate rose to 62.7% from 62.6%, and the number of people who worked part time for economic reasons plunged. The CAC-40 in France was 0.9 percent higher at 4,154. However, earnings were 2.6% higher compared with June previous year, up from a rate of 2.5% in May. "With job creation as strong as it was in June, it's not surprising that more people now feel like looking for paychecks". Earnings climbed 2.5% year-on-year in May.

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