The pace of hiring in the US accelerated in June, with the largest increase in employment in 10 months, suggesting that companies have achieved greater success in recruiting staff to keep up with expanded economic activity.
Non-farm payrolls rose 850000 month-on-month, driven by strong job growth in the leisure and hospitality industries, according to data released by the Labor Department on Friday. The number of new non-farm payrolls was revised up to 583000 in May. The unemployment rate rose slightly to 5.9 per cent, as more people left voluntarily and the number of job seekers rose.
Economists surveyed by the media had a median forecast of 720000 for the increase in non-farm payrolls in June.
"the situation is picking up," said Nick Bunker, an economist at headhunter Indeed. "while the labor supply response may not be as much as some employers want, employment is growing faster and faster."
Although the growth in employment was much higher than expected it did not significantly increase the pressure on the Fed to cut back on monetary policy support. Even with the latest increase, employment in the United States is still 6.76 million lower than it was before the outbreak.
Us stocks opened higher and Treasuries fluctuated after the data were released.
Demand for labor remains strong, as companies struggle to keep pace with economic growth, as anti-epidemic restrictions on corporate and social activities are lifted, COVID-19 is vaccinated on a large scale and the federal government sends out trillions of dollars in benefits.
At the same time, the limited supply of labour continues to haunt employers.
Wage growth is accelerating as companies raise wages to attract employees. The June employment report showed that the average hourly wage of non-managed workers in the leisure and reception industries rose 2.3 per cent month-on-month. The overall hourly wage increased by 0.3% over the same period.
Figures from the Labor Department show that employment in the leisure and hospitality industries increased by 343000.
The overall labor force participation rate is stable at 61.6%, which is still far from the level before COVID-19 's epidemic.