Economy adds 224K jobs in June, exceeding expectations

The U.S. added 224,00 jobs in June, the Labor Department reported Friday, exceeding expectations amid heightened concerns about the health of the economy.

The unemployment rate ticked up slightly to 3.7 percent, largely due to an increase in the size of the workforce, while the labor force participation rate stayed even at 62.9 percent.

{mosads}A sharp increase in manufacturing jobs — 17,000 in June versus a monthly average of 8,000 — was also welcome news for economists after months of stagnation. 

Economists had expected the U.S. to add roughly 160,000 jobs in June, in line with the monthly average job gain throughout 2019, after an initially reported meager gain of 75,000 jobs in May. But the June spike in hiring may help ease some concerns about a deeper slowdown or recession.

President Trump, who is selling the strength of the economy as he seeks a second term, hailed the news on Twitter.

“JOBS, JOBS, JOBS!” Trump tweeted.

May’s dismal jobs report raised concerns that economic headwinds could be slowing the strong U.S. labor market, which had enjoyed joblessness near record lows. 

Global central banks, including the Federal Reserve, have also signaled plans to cut interest rates amid mounting damage from trade tensions, declining growth in Europe and Asia, and geopolitical risks such at the United Kingdom’s divorce from the European Union.

June’s job report is a sign of strength for the U.S. labor market, though average hourly wages rose 6 cents for a modest 3.1 percent year-over-year gain.

“Fed watchers hoping for evidence for deeper rate cuts will likely be disappointed by this report which shows a relatively healthy labor market,” said Glassdoor senior economist Daniel Zhao. “The stagnating wage gains, however, are concerning in this tight of a labor market. We’ll be watching closely in the coming months to see whether wage growth continues to disappoint.”

Updated at 10:56 a.m.