Wage stagnation dampens June job creation

Washington

THE US labour market took one step forward and one back in June as job creation advanced while wages stagnated and the size of the labour force receded.

The addition of 223,000 jobs followed a 254,000 increase in the prior month that was less than previously estimated, a Labour Department report showed on Thursday in Washington. The jobless rate fell to a seven-year low of 5.3 per cent as more people left the workforce.

The figures indicate corporate managers are keeping headcounts in line with stronger consumer demand while overseas markets remain feeble. At the same time, more moderate job gains may still be enough to reduce the unemployment rate, consistent with the Federal…