U.S. job growth increased more than expected in June as manufacturers stepped up hiring. That was the big takeaway from the latest Labor Department report on nonfarm payrolls, which showed that the unemployment rate rose to 4 percent.
But what else did we learn from the June report? What were the other important takeaways? Here are six:
- Average hourly earnings rose 0.2 percent from May. The steady pace of hiring we’ve experienced, along with gradually rising wages and lower taxes, are helping support consumer spending and the continued rebound in the U.S. economy.
- Revisions in prior Labor Department reports added a total of 37,000 jobs to payrolls in the previous two months, resulting in a three-month average of 211,000.
- There’s been continued strength in goods-producing jobs. Manufacturing added 36,000 to payrolls, the best month since December. Service providers boosted payrolls by 149,000.
- The labor market still has room for more growth. The number of employed people in the workforce rose by 102,000, while the number of unemployed jumped by 499,000, suggesting more people entered the labor force and actively sought jobs.
- The participation rate, or share of working-age people in the labor force, increased to 62.9 percent from 62.7 percent in May. While improving prospects for employment and wages are helping attract people from the sidelines of the job market, the retirements of older workers are among factors that have been exerting downward pressure on participation.
- The U-6 or underemployment rate rose to 7.8 percent from 7.6 percent; the gauge includes part-time workers who’d prefer a full-time position and people who want a job but aren’t actively looking.
One way or the other, it was another positive jobs report in a line of strong reports.
