WASHINGTON – The U.S. Labor Department on Friday said the nation’s non-farm payrolls added a whopping 287,000 jobs in June, a stark contrast to the 38,000 jobs originally thought added in May. That number was revised downward on Friday to a paltry 11,000.
Economists had been expecting 175,000 new jobs in June, according to news reports. Meager wage growth struck the only sour note among an otherwise positive set of figures. In June, the average hourly earnings for all employees on private, non-farm payrolls ticked upward 2 cents to $25.61, following a 6-cent increase in May. Over the year, average hourly earnings have risen 2.6%.
The glowing employment report will likely have little impact on the near-term outlook for interest rates, Darrell Cronk, chief investment officer at Wells Fargo Wealth and Investment in New York, told Reuters.
“It’s a great number. This affirms the economy is still on decent footing but it doesn’t change the Fed’s path,” he said.
Most of the job growth occurred in leisure and hospitality, healthcare and social assistance, financial activities and information, including more than 35,000 Verizon workers who returned from a strike.
The unemployment rate currently stands at 4.9%, increasing from May’s 4.7% level as the labor participation rate rose. By comparison, the unemployment rate ballooned to 10% at the height of the recession.
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In a blog post following the release of the latest jobs report, Labor Secretary Tom Perez said since early 2010, American businesses have added 14.8 million jobs.
“Our economy is strong and resilient, growth is broad-based and I believe we’re well positioned to weather global headwinds. As the recovery continues, it is inevitable that the pace of job growth will slow – I don’t expect the total number for 2016 to be as high as 2015,” he said. “At the same time, as we get closer to full employment, wage growth is likely to continue to pick up, providing a much needed boost to American families.”
