U.S. economy creates more jobs than expected in June

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The momentum in the US labor market picked up in June, new government data showed Friday, with the private sector and the government adding 222,000 jobs. Average hourly earnings rose four cents to US$26.25, up 0.2 per cent over May and 2.5 per cent higher than June of a year ago - the same annual gain reported in May.

The U.S. Department of Labor's Bureau of Labor Statistics showed an uptick in legal jobs in its monthly employment report for the third straight month.

Healthcare added 37,000 jobs and businesses services 35,000.

In June, 1.6 million persons were marginally attached to the labor force, down by 197,000 from a year earlier. It also trails the first five months of Obama's second term, when 1 million jobs were added, and the first five months of George W. Bush's second term, when 1.2 million jobs were added.

This month's numbers came as economists have anxious that the United States economy is struggling to create large numbers of new jobs despite president Donald Trump's pledge to create "JOBS!"

The economy added a whopping 222,000 jobs in June, beating analyst expectations of 175,000 and showing that the economy remains in good health.

The Bureau of Labor Statistics revised April and May's reports to reflect an additional 47,000 jobs added in total. When the unemployment rate begins to plateau, that may suggest that the economy is running short of excess workers, and that wage gains and inflation are on the way.




Diane Swonk, the founder of Chicago-based DS Economics, told The New York Times she contributes the slower hiring pace to uncertainty around the future of health insurance coverage.

The unemployment rate was relatively unchanged at 4.4 percent, up from 4.3 percent in May. The one-tenth of a percent increase is due to more people, perhaps encouraged by mostly positive economic news, resuming their search for work.

The pace of job gains remains relatively strong, almost seven years into the current economic expansion.

The labor force participation rate rose incrementally from 62.7 percent to 62.8 percent during President Donald Trump's fifth full month in office, continuing to trend at its lowest rate since the late 1970s.

In June this May this rate fell to 8.4%, the lowest reading since June 2007. The unemployment number last month was the lowest it's been in a decade. The industry has added 277,000 jobs over the year.

While growth has continued to pull workers off the sidelines of the economy into gainful employment, it hasn't yet translated into strong wage gains, though some economists believe it may be coming soon. The broader S&P 500 edged 8.5 points higher, or 0.4%, to 2,418.

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