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

US Jobs Roar Back in June

US Jobs Roar Back in June

The unemployment rate, meanwhile, increased from 4.7 percent in May to 4.9 percent in June as more people entered the labor force, the Labor Department said.

USA employers added 287,000 jobs in June, a strong rebound from May's unnerving plunge in hiring, delivering a fresh sign of United States economic strength, the Labor Department reported on Friday.

USA job growth surged in June as manufacturing employment increased, more evidence the economy has regained speed after a first-quarter lull, but tepid wage growth could see the Federal Reserve remaining cautious about hiking interest rates. The three-month average of monthly gains rose to 147,000, after taking into account the Labor Department's revised estimates that showed 6,000 fewer jobs were created in April and May than previously reported.

Health care and social assistance added more than 58,000 jobs as hospitals, clinics, nursing care facilities and child day care centers added workers.

Employment in professional and business services continued to trend up in June, gaining 38,000 jobs. The June jobs report showed that the Verizon workers were added back to information-sector payrolls.

Despite those gains, monthly employment growth averaged 171,000 in the first half of 2016, compared to 229,000 past year and 251,000 in 2014.

"Total nonfarm payroll employment increased by 287,000 in June, after changing little in May", the report detailed.

"It has been a month of huge shocks for the global economy, but what you can hear now is a massive sigh of relief from the markets". The prior month's unexpected employment rate was significantly alarming for voting members of the Federal Reserve's (Fed) policy-making committee to not change the interest rates during its meeting last month. Labor Secretary Perez says he would expect to see improving wage growth even as jobs creation slows. In an interview with Bankrate, Labor Secretary Thomas Perez called the report "very good", showing the resilience of the us economy.

Revisions showed USA employers added 6,000 fewer jobs in May and April than previously estimated. However, earnings were 2.6% higher compared with June previous year, up from a rate of 2.5% in May.

Though the Federal Reserve warned against putting too much weight on one month's data, it said the weak May jobs report increased its uncertainty about the labor market.

Analysts said the Fed would also be watching to see what Britain's decision to depart the European Union would mean for the USA economy. But wages appear to be increasing gradually; they were up 2.6% from a year ago, compared with an annual average of about 2% during most of the recovery. Manufacturers added 14,000 jobs, the most since January.

Like this: