WASHINGTON (AP) - The Federal Reserve could now be more likely to slow its bond purchases in the next few months, after a jobs report that was stronger than expected today.
The government reported that employers added 195,000 jobs in June, and many more in April and May than previously thought. The job market is showing surprising strength and resilience in the face of tax increases, spending cuts and economic weakness overseas.
The June job gain was fueled by consumer spending and the housing recovery. Hiring was especially strong among retailers, hotels, restaurants, construction companies and financial services firms.
Paul Edelstein, an economist at IHS Global Insight, says, "The numbers that we're seeing are more sustainable than we thought." He says, "We're seeing better job numbers, the stock market is increasing and home prices are rising."
The monthly jobs report also showed that pay rose sharply last month, and is outpacing inflation.
Despite the job gains, the unemployment rate remained at 7.6 percent, as more people began looking for work.
In the aftermath of this morning's report, stocks posted solid gains and then retreated a bit before again advancing.
162-w-34-(Mark Smith, AP White House correspondent, with Alan Krueger, chairman, President's Council of Economic Advisers)--The White House is welcoming the strong jobs showing in June. AP White House Correspondent Mark Smith reports. (5 Jul 2013)
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155-a-11-(Alan Krueger, chairman, President's Council of Economic Advisers, in AP interview)-"of the sequester"-White House economist Alan Krueger says the numbers would have been even better -- if it weren't for automatic federal budget cuts. (5 Jul 2013)
CUT *155 (07/05/13)££ 00:11 "of the sequester"
140-a-15-(Diane Swonk, chief economist, Mesirow Financial, in AP interview)-"find fulltime employment"-Economist Diane Swonk says the report is a double-edged sword. (5 Jul 2013)
CUT *140 (07/05/13)££ 00:15 "find fulltime employment"
137-a-16-(Hugh Johnson, chairman, Johnson Advisors, in AP interview)-"by this report"-Economist Hugh Johnson says the report shows the economy is doing well. (5 Jul 2013)
CUT *137 (07/05/13)££ 00:16 "by this report"
APPHOTO NYBZ121: In this June 21, 2013 photograph a sign seeking drivers is posted outside the Pearl, Miss., customer service center for Central Transport, a long haul transport trucking company. U.S. employers added a robust 195,000 jobs in June and many more in April and May than previously thought. The job growth raises hopes for a stronger economy in the second half of 2013. (AP Photo/Rogelio V. Solis) (21 Jun 2013)
APPHOTO NYBZ121 (06/21/13)££
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