America’s job market stirred to life in June as payroll growth accelerated by the most since October after a two-month lull, assuaging fears of broader cutbacks by companies.
Payrolls climbed by 287,000 last month, exceeding the highest estimate in a Bloomberg survey, after a revised 11,000 gain in May, a Labor Department report showed Friday. The median forecast in a Bloomberg survey called for a 180,000 increase. The jobless rate rose to 4.9 percent as more people entered the labor force. Wages advanced less than projected.
The figures will help reassure workers and Federal Reserve policy makers alike that companies are staying the course on hiring in the face of weaker profits and overseas developments such as Britain’s vote to leave the European Union. While job growth may be moderating as the economy approaches full employment, wages are slowly picking up and will underpin consumer spending.
The weight of evidence suggests “that the May jobs report exaggerated the degree of slowing in the labor market,” Michael Feroli, chief U.S. economist at JPMorgan Securities LLC in New York, said before the report. Job growth is “obviously not as booming as we were seeing over much of the last few years, which was probably unsustainable.” Read more
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