United States: Payrolls up in June, beat expectations
July 8, 2013
In June, non-farm payrolls grew by 195,000, which matched the revised 195,000 rise observed in May (previously reported: 149,000). Moreover, the reading overshot market expectations, which had anticipated payrolls would rise by 161,000.
The private sector continued to be entirely responsible for new hiring by adding 202,000 jobs. Leisure and hospitality as well as professional and business services were the sectors recording the largest gains. On the other hand, the public sector cut 7,000 jobs, maintaining the negative trend seen throughout most of the past three years.
The U.S. economy has now recovered 6.6 million jobs since February 2010, which marked the trough of the crisis in the labour market. That said, despite the improvement seen in the past three years, the economy still remains 2.2 million jobs below the peak reached in January 2008.
Despite the rise in payrolls, the unemployment rate - which is derived from a different survey - remained stable at 7.6% in June. Moreover, the reading disappointed the market, which had the jobless rate falling to 7.5%.
FocusEconomics Consensus Forecast panellists anticipate unemployment to average 7.7% this year, which is down 0.1 percentage points from last month's forecast. For 2014, the panel expects the unemployment rate to drop to 7.2%.