News / Business

US posts largest job gains in eight months

Friday, 08 July 2016 6:25 PM [ Last Update: Friday, 08 July 2016 6:25 PM ]

Official figures show the number of jobs created in the US increased by 287,000 – the highest level since last October.

The latest official figures released by the US Labor Department show the number of jobs created in the country in June increased by 287,000 in what is seen as the largest gain in eight months.

The surge in US job growth comes as factories and retailers increased hiring. This is seen to have confirmed that the world’s largest economy has regained speed after a first-quarter lull.

Last month's tally beat economists' expectations for an increase of only 175,000 jobs, Reuters reported. While the unemployment rate rose two-tenths of a percentage point to 4.9 percent, that was because more people entered the labor force, a sign of confidence in the jobs market, it added.

Nevertheless, wage growth still appears to have remained sluggish. Average hourly earnings increased only two cents or 0.1 percent in June, Reuters added. The year-on-year gain in earnings rose to 2.6 percent after advancing 2.5 percent in May.

Manufacturing employment increased 14,000 last month after shedding 16,000 jobs in May. The retail sector added 29,900 jobs, and the leisure and hospitality sector gained 59,000 jobs.

Construction payrolls were unchanged after two months of declines.

Even with June's jobs bounce back, forward momentum in the labor market has slowed. Job gains averaged 282,000 per month in the fourth quarter, but employment has increased by an average of only 171,500 jobs per month in the first half of this year, Reuters added.

Economists say the deceleration is normal given the relatively advanced age of the economy's recovery from the 2007-09 recession, with the labor market now near full employment, it concluded.

Press TV’s website can also be accessed at the following alternate addresses:

www.presstv.co.uk