Payroll jobs rebounded by 287,000 in June, well above consensus estimates.
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Analysts remained cautious over what the hiring surge means for the economy going ahead, saying USA businesses could remain cautious in the coming months, concerned about the possible economic drag from Britain’s vote to withdraw from the European Union, expected to hit economic growth in Britain and Europe.
But here’s the takeaway for voters: The June jobs report gives us a sense that the USA economy remains reasonably stable in the face of financial markets volatility and the prospect of further headwinds blowing ashore from overseas.
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.
The U.S. added 287,000 jobs in June, the U.S. Department of Labor reported Friday, reversing a weak May figure and putting an interest rate hike from the Federal Reserve back in play this year. Wage growth had been stronger in the two previous months, suggesting that some labor markets were perhaps tightening up. But, modest wage growth over the year, and the continued headwinds for US manufacturing from global uncertainties and global slower growth mean the Federal Reserve should continue its policy of holding off interest rate hikes.
“Most important, today’s report quells any concerns of a broader economic slowdown in the USA”. In June, the USA central bank decided for the fourth time this year not to raise U.S. interest rates.
The for-hire trucking industry’s total employment fell by a whopping 6,300 jobs in the month of June, according to preliminary figures reported July 8 by the Department of Labor’s monthly Employment Situation Report. What’s more, June was the 69th consecutive month of positive job growth, which is the longest on record.
The bulk of May’s job losses were blamed on a telecommunications strike, during which about 35,000 Verizon workers were not on company payrolls. Taken together with other growth figures this year, the newly released job data indicate that USA economy is expanding steadily, though not surging, as the labor market gradually moves closer to a full recovery from the recession. Prior to the report, economists estimated only 180,000 jobs would be added.
Friday’s report provided other evidence of an improving job market.
“I believe last month was an outlier that’s not likely to repeat this month”, said Andrew Chamberlain, chief economist at Glassdoor, an employment website.
June’s rebound marked a sharp reversal from May, when the sector shed 28,800 jobs, despite the addition of 7,400 jobs in the IT services category.
In June, thousands of jobs were added in retail, hospitality, health care, business and professional services, retail and financial services.
The big boost in hiring in June alleviates fears that the US economy is sputtering.
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The economy is still showing lackluster numbers when it comes to long-term unemployment. But the uptick occurred mainly for an encouraging reason: More Americans began seeking jobs – a sign of growing confidence in their prospects – though most didn’t immediately find work.
