US economy

US hiring accelerates sharply in June with 224,000 new jobs


The US labour market bounced back in June, with the addition of more jobs than expected helping to offset a slight increase in the unemployment rate.

Non-farm payrolls rose by a net 224,000 last month, recovering from May’s unexpectedly weak result of 72,000, which had been revised lower from an initial result of 75,000.

The June figure was the biggest net addition since April and came in comfortably above the median forecast of 160,000, according to a survey of economists by Refinitiv.

The unemployment rate ticked up 0.1 percentage point to 3.7 per cent, versus Wall Street’s expectation it would hold steady at its lowest level since 1969.

Average earnings rose 3.1 per cent from a year ago in June, steady from May’s level, but 0.1 percentage point short of economists’ expectations.

The resilience of the labour market has continued to offset concerns about the health of the broader US economy that have been spurred by the likes of softening activity in the manufacturing and services sector and below-target inflation.

Investors have ramped up bets in recent months that the Federal Reserve may cut interest rates, possibly as early as the end of July, in order to sustain the economic expansion. The absence of a speedy resolution to the US’s trade war with its allies is also complicating matters for policymakers.



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