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U.S. Job Growth Exceeds Estimates In June, Unemployment Rate Unchanged

U.S. Job Growth Exceeds Estimates In June, Unemployment Rate Unchanged

Employment in the U.S. increased by more than anticipated in the month of June, according to a report released by the Labor Department on Friday.

The report said non-farm payroll employment increased by 195,000 jobs in June, matching the revised job growth seen in May.

Economists had been expecting employment to increase by about 165,000 jobs compared to the addition of 175,000 jobs originally reported for the previous month.

Along with the upward revision to the job growth in May, the increase in jobs in April was also upwardly revised to 199,000 from 149,000.

Chris Low, chief economist at FTN Financial, noted that the employment picture has changed dramatically due to the revisions to April and May.

"Before, the first half of 2013 consisted of discouragingly little job growth except in February," Low said. "Now, four of six months are either within touching distance of 200k or are over 200k."

"Given Bernanke's penchant to judge job growth from the 6-month average, he is likely to see this report as evidence of economic strength, both a vindication of QE and a reason to start curtailing it," he added.

Despite the stronger than expected job growth, the unemployment rate came in unchanged at 7.6 percent. The unemployment rate had been expected to edge down to 7.5 percent.

The report showed that the private sector added 202,000 jobs in June, although the increase was partly offset by the loss of 7,000 government jobs.

Strong job growth was visible in the leisure and hospitality sector, which added 75,000 jobs. The professional and business services, retail trade, health care, and financial activities sectors also saw notable job growth.

Additionally, the Labor Department said average hourly employee earnings rose by 10 cents to $24.01. Compared to the same month a year ago, average hourly earnings have risen by 51 cents or 2.2 percent.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

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