U.S. nonfarm payrolls increase more than expected in June

The U.S. Labor Department announced on Friday that nonfarm payrolls increased by 224,000 in June after a downwardly revised 72,000 gain in the prior month (originally an increase of 75,000). It marked the biggest increase since January.

According to the report, notable job gains occurred in professional and business services (+51,000 jobs in June), in health care (+35,000), and in transportation and warehousing (+24,000).

At the same time, the unemployment rate rose to 3.7 percent in June from 3.6 percent in May.

Economists had forecast 160,000 new jobs and the jobless rate to stay at 3.6 percent.

The labor force participation rate edged up to 62.9 percent from 62.8 percent in May, while hourly earnings for private-sector workers rose 0.2 percent m-o-m (6 cents) to $27.90, following a revised 0.3 percent m-o-m gain in May (originally a 0.2 percent m-o-m increase). Economists had forecast a 0.3 percent m-o-m advance in the average hourly earnings. Over the year, average hourly earnings have increased by 3.1 percent, the same pace as in May.

The average workweek was unchanged at 34.4 hours in June, in line with economists’ forecast of 34.4 hours.