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2nd LD Writethru: U.S. economy adds more jobs than expected in June

Xinhua, July 8, 2016 Adjust font size:

The U.S. economy added 287,000 jobs in June, exceeding market expectation and signaling renewed momentum for the job market growth.

The total nonfarm payroll employment increased by 287,000 in June in the United States, the fastest pace since October after a two-month sluggish performance, said the Labor Department on Friday.

The Labor Department revised up the job increase in April, but revised down the growth in May, with the combined job gains in these two months 6,000 less than previously reported.

The jobless rate rose to 4.9 percent in the month, as more people entered the labor force.

The labor force participation rate, the share of the working-age population employed or looking for a job, went up to 62.7 percent.

Average hourly earnings for all employees edged up 2 cents to 25.61 U.S. dollars, following an increase of 6 cents in May. The average hourly earnings have risen by 2.6 percent year on year.

Friday's better-than-expected job market report might ease the fears about a broader economic slowdown.

The minutes of the U.S. Federal Reserve's latest monetary policy meeting showed that one of the major reasons for the central bank to hold off another interest rate hike was the"uncertainty about the likely pace of improvements in the labor market going forward" .

U.S. Fed has kept the benchmark short-term interest rates unchanged after it raised the rate last December.

Fed officials have forecast two more rate hikes for this year, while market investors expected only one or no rate hike this year, due to the weak job gains in April and May and other uncertainties around the economic outlook, such as Britain's decision to leave the European Union.

The minutes also showed that Fed officials disagreed on their judgment of the job market outlook. Some officials believed that labor market conditions were at or close to the maximum employment, and some moderation in employment gains was to be expected, while others observed that there could be a possible downshift in the pace of improvement in the labor market, in view of the recent slow job gains, decline in the labor participation rate and no reduction in part-time employees.

Some Fed officials, including Fed governor Daniel Tarullo, recently called for more patience on interest rates hike due to low inflation and the uncertainty from the Brexit. Endi