The unemployment rate rose to 5.9% from 5.8%, as a sizable number of students hit the labor market during the month and likely had difficulty finding jobs.
Goods producers jobs fell by 10,000 during the month, thanks to a 23,000 drop in manufacturing employment. Construction payrolls expanded 14,000 after contracting since January. Service producers added 46,000 jobs, thanks to a 33,000 gain in service jobs and a 23,000 increase in government employment. Jobs in retail trade business fell 18,000 after a 22,000 drop.
Overall, the report was actually stronger than expected despite the disappointment over payrolls. The June gain in the workweek to 34.3 hours and the 0.4% gain in average hourly earnings are both consistent with monthly gains in the 0.4% area for personal income and industrial production. The hours-worked index rose a solid 0.3% for the month, and posted positive growth of 0.3% for the second quarter as a whole, versus the 0.5% rate of contraction in first quarter.
The data are consistent with 3% real GDP growth in the second quarter. From Standard & Poor's Global Markets