Employers shook off two months of weak hiring by adding 287,000 jobs in June, a robust pace that suggests a resilient U.S. economy recovering from a slump early in the year.
The Associated Press reports the hiring spurt marked a sharp improvement from May’s dismal showing, when only 11,000 jobs were added, and April’s modest gain of 144,000.
The unemployment rate rose in June from 4.7% to a still-low 4.9%. But the uptick occurred mainly for an encouraging reason: More Americans began seeking jobs—a sign of growing confidence in their prospects—though many didn’t immediately find work.
The broadly positive jobs report suggests that the U.S. economy was improving before the United Kingdom startled the world late last month by voting to leave the European Union. The “Brexit” vote roiled financial markets and raised fears that the global economy would slump and possibly even succumb to a recession.
The job growth will also raise hopes that the U.S. economy, which has repeatedly defied overseas weakness before, may be able to further strengthen even as the rest of the world slows.
Stock futures rose sharply after the jobs report was issued at 8:30 a.m. Eastern time, reflecting a belief that the U.S. economy remains resilient.
“This is clearly positive news after the worrying slowdown in previous months,” Andrew Hunter, assistant economist at Capital Economics, wrote in a research note.
Average hourly pay, a chronic weak spot in the seven-year U.S. recovery from the Great Recession, rose in June. Over the past 12 months, average wages are up 2.6%—the best year-over-year gain since December, though still below the longstanding pace of about 3.5%.
The Associated Press has the full story.
