Job growth rebounds to 222,000 in June; unemployment rate ticks up to 4.4%
The new figures suggest businesses may be confident enough to keep hiring despite a slow-growing economy. (Sign up for our free video newsletter here http://bit.ly/2n6VKPR)
Reporting from Washington — The labor market rebounded strongly in June as U.S. employers added 222,000 net new jobs for the best performance since February, the Labor Department said Friday.
The figure was a significant improvement from May’s upwardly revised job growth of 152,000 net new jobs and well above analyst expectations. Job creation for April and May was revised up by a total of 47,000.
The unemployment rate ticked up 0.1 percentage point last month after hitting its lowest level since 2001 in May. But the increase, to 4.4%, was for a good reason as 361,000 people joined the labor force a month after it contracted.
That nudged up the labor force participation rate to 62.8%, still near a four-decade low.
“Hiring is back to where it has been throughout much of the 8-year-old economic expansion,†said Mark Hamrick, senior economic analyst at financial information website Bankrate.com.
“With a June surge in hiring and upward revisions to payroll gains for April and May, the past three months are looking better than what we’d been thinking,†he said. “Growth is modest, not spectacular, which is to be expected for a mature expansion.â€
President Trump on Monday criticized the media for ignoring the “great jobs numbers†since he took office. With June’s strong growth and the statistical revisions, monthly job gains have averaged 180,000 this year, close to last year’s level of 187,000.
Wages continued their slow and steady rise last month.
Average hourly earnings increased 4 cents last month to $26.25. For the 12 months ended June 30, wages have increased 2.5%. That’s a slight increase and above the rate of inflation but still short of the stronger growth economists have been hoping for as the labor market tightens.
“Job growth is great. Low unemployment is even better. But many argue an increase in wages is what this economy needs most,†said Mike Loewengart, vice president for investment strategy at online broker E-Trade.
June’s job growth was boosted by large increases in hiring by in the healthcare and social-assistance sector as well as local governments. A bounce back by retailers also helped. The sector added 8,100 net new jobs in June after shedding 7,200 the previous month.
The mining industry also continued its recent growth after employment plunged with oil prices. The sector, which also includes logging, added 8,000 net new jobs in June. Since hitting a recent low in October, the sector has added a total of 56,000 net new positions.
The jobs figures should provide relieve to Federal Reserve monetary policymakers, who have been increasing a key short-term interest rate in large part because of the strength of the labor market.
In June, the Fed nudged the rate up for the third time in six months. Even though the pace of job growth has moderated this year, Fed Chairwoman Janet L. Yellen said the labor market “continues to strengthen.â€
If job growth remains solid, the Fed is expected to raise the rate again before the end of the year.
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UPDATES:
6 a.m.: This article was updated with staff reporting and analysis.
This article originally was published at 4:35 a.m.
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