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U.S. government reports 'better-than-expected' job growth in June Print Email
Written by Eric Tiansay   
Thursday, 11 July 2013 09:47 AM America/New_York

U.S. employers added a better-than-expected 195,000 jobs in June. The U.S. Labor Department also revised upward the previous two months, noting that 149,000 jobs estimate in April was really 199,000 new jobs, and 175,000 in May was actually 195,000, the Fort Worth Star-Telegram reported.

"This is a very solid report," said Mark Zandi, chief economist for forecaster Moody's Analytics. "In addition to the solid job gains, it is also encouraging that hours worked per week remain high, which is a positive leading indicator for jobs, and hourly earnings growth is holding up."

Scott Anderson, chief economist of San Francisco-based Bank of the West, added: "The June payroll figures did not disappoint, coming in far better than analysts expected. The jobs recovery is finally starting to join the rest of the economic expansion."

The positive report comes on the heels of improving home sales, stronger consumer confidence and growing car sales, the Star-Telegram reported. During the past six months, hiring has averaged almost 202,000 a month—a rate that will start lowering unemployment numbers if it continues.

Retailers added 37,000 jobs and the sector appears to be growing, the Star-Telegram reported.

"The strong jobs report is welcomed news for the economy and may signal positive and accelerated momentum for the second half of 2013," Jack Kleinhenz, chief economist for the National Retail Federation, said in a statement. "Payrolls came in stronger than expected, including in the retail industry, which witnessed strong gains in building supplies, clothing and sporting goods. The economy is currently stable, but traction and pace remain uncertain."

Despite all the positive developments, most predictions of the gross domestic product (GDP)—the sum of goods and services in the U.S. economy—remain subdued, the newspaper reported.

"I still don't think the job market is off and running," Zandi said. "Real GDP growth has slowed meaningfully so far this year, and this should show up in softer job growth in coming months. The weak global economy is hurting manufacturing exports and jobs, and government layoffs remain a significant drag."

The unemployment rate held steady at 7.6% last month, despite three solid months of hiring.

"So far this year, 1.23 million private-sector jobs have been added," Alan Krueger, head of the White House Council of Economic Advisers, said in a blog. "The household survey showed that the unemployment rate remained at 7.6% in June, down from 8.2% a year ago."