The unemployment rate in the US rose in June to 4%, but hiring remained robust as the US added 213,000 new jobs last month, per a government report out today.
Economists had projected that the non-farm payroll would jump by 195,000 while the unemployment rate would remain unchanged at 3.8%, its lowest level since April 2000.
The results of the monthly report from the Bureau of Labor Statistics still suggest that the US labour market looks relatively healthy as wage growth has kept up its pace and new revisions report more robust job growth in both April and May.
Nancy Curtin, chief investment officer at Close Brothers Asset Management, said: “The US labour market continues to go from strength to strength, matching the second quarter upswing seen in the wider economy.”
“While wage growth is finally showing signs of picking up, Jerome Powell will be keen to see whether recent small improvements in productivity continue to accelerate serving as a counterbalance to these wage gains,” Curtin added.
Revised figures also showed that employers added 175,000 jobs in April and another 244,000 jobs in May, which means that employment gains for these two months were 37,000 more than previously reported.
The so-called labor force participation rate, which assesses the percentage of Americans who either have a job or are trying to find one, jumped to 62.9% in June from 62.7%.
Wage growth also jumped a tad, rising 2.7% from last June. Average hourly earnings crept up in the month by 5 cents to US$26.98
Another measure of unemployment, which takes into account people who want to work but are no longer searching as well as part-time workers who can’t find full-time work, ticked up to 7.8% last month from a low of 7.6% last May.