U.S. Adds 287,000 New Jobs during June

With the national conventions for the Democrats and Republicans just a few weeks away, on Friday the government released its latest jobs report.

The report said that employers added over 287,000 new jobs during June, which represented a big rebound from the previous month and helps to set the stage for economic themes from the two presidential nominees.

The rate of unemployment actually increased from 4.7% to 4.9%, and after three straight months of increases, the average hourly wage move down slightly.

The unexpectedly grim report on unemployment for May was upsetting enough that it convinced every member who voted from the policymaking committee of the Federal Reserve to oppose any increase to the benchmark interest rate.

That May jobs report, added to the Brexit vote of leaving the European Union, fanned more worries that the economy in the U.S. was going to stall.

Concerns over the vitality of the economic recovery, which is now seven months old, persist but most economists pointed out a number of signs that are encouraging such as consumer spending and manufacturing data.

Every jobs report each month provides just a fleeting picture that is incomplete, the strike of over 35,000 workers from Verizon artificially held the May totals down, and those totals were back up in again for June as they returned to work.

What is more important, economists have said that if the employment picture for the longer term were darkening significantly, stress would be present in other areas that are crucial and it is not.

New unemployment benefits claims have remained at levels that are rock bottom, spending by consumers remains strong and the service and manufacturing indexes are up while unfilled jobs are sitting at record lows.

Given that the rate of joblessness has been sitting around 5% on a consistent basis, analysts have said it is time to lower benchmarks for what is considered a solid or weak report.

One economist said that due to growing numbers of baby boomers retiring and the growth in the population, a gain each month of between 75,000 and 100,000 new jobs is more than sufficient to keep the rate of unemployment steady.

A monthly gain of 125,000 is what is needed to nudge the unemployment number down further.

Many people in the U.S. particularly those that have less education and fewer skills who have not yet taken part in the rewards of the jobs recovery, have the evidence needed that the economy remains distressed.

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