Investing.com - Nonfarm payrolls (NFP) rose by 213,000 in June, according to official data released on Friday.
The data was higher than the consensus estimate for the creation of 200,000 jobs and above the 177,000 positions that the ADP report indicated on Thursday.
The previous month’s reading of NFP was revised to 244,000 from the 223,000 registered initially.
The jobless rate unexpectedly rose from 3.8% to 4.0%, missing consensus expectations for it to remain unchanged.
Average hourly earnings advanced 0.2% month-on-month in June, below expectations for it to repeat a 0.3% gain.
On an annualized basis, wage inflation grew 2.7% in June, in line with the prior month’s advance but below expectations for a 2.8% rise.
The increase in wages is being closely monitored by the Federal Reserve for evidence of diminishing slack in the labor market and upward pressure on inflation. Economists generally consider an increase of 3.0% or more to be consistent with rising inflation.
Average weekly hours clocked in at 34.5 last month. That was in line with the forecast for them to hold steady at May’s reading.
Additionally, the private sector created more new job contracts than expected in June with a total of 202,000.
Analysts had forecast the creation of just 190,000 new private sector jobs.
May’s number was revised to an increase of 239,000 private nonfarm payrolls, from the prior reading of 218,000 jobs in the private sector.
Government payrolls increased by 11,000 last month, compared to the prior creation of 5,000 public positions in May.
The participation rate increased to 62.9% in June, from the prior month’s reading of 62.7%.
The U-6 unemployment rate, that includes those workers who are working part-time for purely economic reasons, rose to 7.8% in June from the prior 7.6%.