June Jobs Report: U.S. Economy Adds 222,000

The U.S. economy gained 222,000 non-farm payroll jobs in June while the U.S. unemployment rate increased to 4.4 percent from 4.3 percent, according to a new labor report today from the U.S. Bureau of Labor Statistics.

Economists from briefing.com had a 173,000 consensus estimate for the June non-farm payroll report.

The health care sector added the most jobs in June with 37,000 followed by food services with 29,000 and social assistance employment which increased by 23,000 in June.

Job revisions in April and May combined were 47,000 more than previously reported.

April was revised up from 174,000 to 207,000 while May was revised from 138,000 to 152,000.

Employment gains has averaged 180,000 per month this year and during the past 3 months, job gains have averaged 194,000 per month.

Average hourly earnings for all employees on private nonfarm payrolls increased in June by 4 cents to $26.25 and have grown by 2.5 percent or .63 cents over the year.

The average workweek for all employees on non-farm payroll rose by 0.1 hour to 34.5 hours in June.

The labor force participation rate was 62.8 percent in June.

Yesterday private payroll processor ADP reported that in June the U.S. economy added 158,000 private sector jobs, below the 185,000 consensus estimate from briefing.com and lower than 253,000 in May.

Besides employment data, the U.S. Federal Reserve closely weighs U.S. inflation when making monetary policy decisions with interest rates.

The Fed’s preferred inflation gauge, Core PCE index (minus food and energy), dipped to 1.4 percent in May and is below 1.5 percent for the first time since the end of 2015.

Fed participants currently project that Core PCE will rise to 1.7 percent in 2017, lower than their 1.9 percent projection from their March policy meeting.

Last month, Fed participants at the U.S. Federal Reserve voted to hike interest rates with the federal funds for the 2nd time in 2017 and offered a median projected policy path that shows one more interest rate is likely to occur in 2017.

Written and Edited By:

Johnathan Schweitzer



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