The U.S. economy added a strong 287,000 non-farm payroll positions in June, according to the latest monthly employment report from the Bureau of Labor Statistics, released this morning. The seasonally adjusted figure is nearly 25 times bigger than May's downward-revised addition of 11,000 jobs. Besides the 35,000 Verizon employees returning to work from a six-week strike, the job growth in June still marks significant growth (only second to last October) for the past year.
The result, crushing the 200,000 payroll additions forecast by Moody's Analytics chief economist Mark Zandi that BUILDER reported earlier this week, comes as a huge relief to the tumbling market and tamps down concerns of an economic slowdown.
The national unemployment rate increased 20 basis points to 4.9% in June, while labor-force participation rate roughly held at 62.7%. This month's average hourly wages for all private, nonfarm workers increased by 2 cents to $25.61, carrying on the wage growth streak seen in recent years.
Construction employment held firm last month, putting an end to the job shedding trend seen in the two previous months. Zandi of Moody's Analytics said in a conference call before the release that the construction industry, particularly single-family housing, is going to rebound and make strong gains due to favorable low mortgage rates and housing demand. And the global turmoil caused by Brexit, or Britain's vote to exit the European Union, will further push down the U.S mortgage rates, and spur consumer re-financing, and re-building equity in their homes.
The strength of the report prompted Lawrence Yun, chief economist for the National Association of Realtors, to issue the following statement: “June’s job growth represents a spectacular rebound. It’s also comforting in terms of consistency on a year over year basis – despite some monthly swings – with around 2.5 million net new job additions over the latest 12 months. Further, dynamism is rising with more gross hiring and more people switching to different employers."
Yun continued, "This trend is showing up in wages – the best year-over-year rise in many years. The stronger job market means mortgage rates will likely rise a bit from historic lows. The only concern is still sluggish employment rate at under 60% of adults compared to 63% before the recession. All in all, good news for home sales and increased demand for commercial spaces.”
Read the full release here>>