Numbers for the June jobs report this morning show the highest job gain in the past eight months. The report was higher than even the most optimistic projection on Wall Street, negating the worry of a broader economic slow down. The U.S. economy added 287,000 jobs to the non-farm payroll, over 100,000 more than the median projection of 180,000.
May’s job numbers on the other hand were revised from 35,000 to a mere 11,000 while April gained an additional 21,000 jobs than original reports. Over the past three months the average number of jobs added was 147,000 per month.
The unemployment rate ticked up from 4.7% to 4.9%, thought to be a result of more people entering the workforce overall. Hourly earnings rose 2.6%, a post-recession high for wage growth. The labor force participation rate changed little in June at 62.7%.
Financial activities added 16,000 jobs in June, contributing to an overall growth of 163,000 in 2016. Gains did not carry over to the unemployment rate though, which jumped from 1.8% to 2.2% over the past month for the sector. Economic factors could be the reason behind this uptick in the unemployment rate for the sector, especially in light of the Brexit poll.
After a concerning May jobs report and the economic impacts of the Brexit decision, the June jobs report is a pleasant surprise to the Fed and those on Wall Street. Raising interest rates will once again become the topic of discussion over the next few weeks, with many hoping the best jobs report in eight months will continue to steady the economy.