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U.S. economy adds more jobs in June with jobless rate slightly up to 4.4%

WASHINGTON
2017-07-07 23:46

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The U.S. economy added more jobs in June, while the unemployment rate edged up to 4.4 percent, as more people joined the workforce.

The total nonfarm payroll employment increased by 222,000 in June, beating market expectation of 170,000, according to data released by the Labor Department on Friday.

The better-than-expected data followed a weaker reading in May, when payroll gains were 152,000. The Labor Department revised up the payroll gains in April and May, with job gains hitting 47,000, more than previously reported.

From April to June, monthly job gains have averaged 194,000 positions. The labor force participation rate, which shows the share of working-age people in the labor force, edged up to 62.8 percent from May's reading of 62.7 percent.

As more people joined the workforce, the unemployment rate went up slightly to 4.4 percent from May's 4.3 percent.

In June, average hourly earnings rose 4 cents to 26.25 U.S. dollars. Over the year, average hourly earnings have risen by 2.5 percent, the same growth as in May.

The better-than-expected job data provided further evidence that the economy was in better shape in the second quarter, compared to the lackluster first quarter.

According to the minutes of the Fed's last policy meeting on June 13-14, U.S. Federal Reserve officials gave a relatively optimistic assessment of the job market, saying that the job gains had been solid and could support moderate growth in household spending in the medium term.

In its June policy meeting, the Fed raised the interest rate and announced a plan to trim its holdings of U.S. Treasury bonds and other mortgage-backed securities later this year.
Most analysts and market participants believe that the Fed is likely to start shrinking its balance sheet in September, with a further rate increase in December.

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