US jobs growth accelerates in June but wages continue to lag as Fed ponders hike

Washington

JOB creation in the US rebounded in June while the unemployment rate ticked higher as more people entered the work force in search of jobs, the Labor Department reported on Friday.

The US economic engine created another 222,000 jobs last month, while the jobless rate rose a tenth of a point to 4.4 per cent, according to the report.

The result far surpassed analyst forecasts for an increase of 173,000 new jobs, and was welcome news for the White House after several months in which other economic data suggested the world's largest economy could be starting to lose steam.

"On the surface, this is a goldilocks report. Solid job gains, uptick in participation and no wage pressures. Good for stocks. With any productivity gains, this suggests a real GDP growth rate north of 3 per cent. The problem though is the same issue faces the financial markets now that was there before the report. And that is that if we are creating 200,000 jobs with near 4 per cent unemployment, inflation is going to soon increase, putting pressur…