Employers added 222,000 jobs to their payrolls, and workers put in more hours. As Fred Katayama reports, these signs of labor strength could lead the Fed to hike rates again this year.
The U.S. jobs market finally revved up in June. Employers added 222,000 jobs to their payrolls. That was much higher than economists had expected. What's more, the previous two months' gains were revised upward. The unemployment rate ticked up to 4.4 percent but for a good reason: more people went searching for work. And those who were working worked longer, pushing the average workweek higher. These signs of labor strength could keep the Federal Reserve on course to hike interest rates for a third time this year. State Street Global Advisors chief investment strategist Michael Arone said, "It's probably not until at least September where the Fed begins to tighten monetary policy conditions again, and I don't think this report does anything to change that." But one component closely watched by the Fed - wages - rose 2.5 percent compared with a year ago. That was lower than analysts expected. Job gains were broad-based. The sectors adding the most to payrolls: healthcare, professional business services, and restaurants and bars. Government and manufacturing employment rebounded last month. But auto makers cut jobs as they scaled back production.