Investing.com – The U.S monthly employment report showed that the economy created more jobs than forecast in June, but the unemployment ticked up slightly and wages increased less than expected, according to official data released on Friday.
Non-farm payrolls (NFP) rose 222,000 in June, compared to the rise of 152,000 a month earlier that was revised from the initial increase of 138,000. The data beat the consensus estimate for the creation of 179,000 jobs.
The jobless rate unexpectedly increased to 4.4%, from the prior 4.3%. Analysts had expected no change.
Average hourly earnings rose month-on-month by 0.2%, compared with expectations for an increase of 0.3% and the prior 0.1% advance that was a downward revision from an initial 0.2% rise.
On an annualized basis, wage inflation rose 2.5% in June, below forecasts for a 2.6% rise and in line with the prior month’s year-on-year advance.
The increase in wages is being closely monitored by the Federal Reserve for evidence of diminishing slack in the labor market and upward pressure on inflation. Economists generally consider an increase of 3.0% or more to be consistent with rising inflation.
Additionally, the private sector created more of the new job contracts than expected in June with a total of 187,000, compared to consensus expectations for 172,000. May’s number was revised up to 159,000 private nonfarm payrolls, from the prior reading of 147,000.
Government payrolls increased by 35,000 last month, compared to the destruction of 7,000 public jobs created in June, revised from an initial decline of 9,000 positions.
The participation rate ticked up to 62.8% in june from the previous reading of 62.7%.
The U-6 unemployment rate, that includes those workers who are working part-time for purely economic reasons, rose to 8.6% last month from May’s reading of 8.4%.
Furthermore, the average weekly hours rose to 34.5 in June. from the prior month’s reading of 34.4. Analysts had expected no change.
After the release, the dollar trimmed gains. The U.S. Dollar Index traded at 95.68, compared to 95.78 earlier. EUR/USD traded at 1.1419, from 1.1410 before the publication, USD/JPY traded at 113.79, from 113.73 earlier, and GBP/USD was at 1.2905, compared to 1.2894 previously.
U.S. futures pointed to a higher open on Wall Street. The blue-chip Dow futures gained 0.17%, S&P 500 futures rose 0.22% while the Nasdaq 100 futures traded up 0.45%.
Elsewhere, in the commodities market, gold futures traded at $1,223.87 a troy ounce, compared to $1,221.02 ahead of the data, while crude oil traded at $44.61 a barrel from $44.59 earlier.