The U.S. economy added a better-than-expected 222,000 new jobs in June and the unemployment rate held at 4.4 percent, according to a government report Friday.
Economists surveyed by Reuters had been expecting nonfarm payrolls growth of 179,000 and the unemployment rate to be 4.3 percent.
Wage growth, however, remained muted, with average hourly earnings rising 2.5 percent on an annualized basis, essentially unchanged from the previous month. On a monthly basis, the rise was 0.2 percent, which actually was a shade below the 0.2 percent expectation.
The jump in payrolls came following a disappointing May that saw an increase of just 152,000. However, even that number was revised up from an initially reported 138,000, and April was revised upward as well, from 174,000 to 207,000.
Health care was the biggest contributor, with 37,000 new positions. Social assistance added 23,000, Wall Street-related jobs grew by 17,000 and mining — a focal point for the Trump administration — saw 8,000 new positions.
An alternative measure of unemployment that counts discouraged workers and those holding part-time positions for economic reasons — the underemployed — rose from 8.4 percent to 8.6 percent.
Investors watched the report both for headline numbers and for indications on whether worker salaries were increasing. Despite the plunge in the unemployment rate during the recovery, there have been only scant signs of wage pressures.
That lack of inflation has vexed policymakers at the Federal Reserve, which is expected to raise its benchmark interest rate once more this year. Indications from central bank officials are that they believe the low inflation pressures to be temporary, though a continued lack of wage growth could change that perspective.
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