U.S. employers hired more workers in June, pushing the unemployment rate close to the lowest levels in nearly six years as the economy gains momentum at the onset of the final half of 2014.
Nonfarm payrolls grew by 288,000 new workers last months while the jobless rate declined to 6.1 percent, compared with 6.3 percent in May, reported the Labor Department. The report also showed that 29,000 more workers were absorbed than it was previously estimated.
The number of Americans who were employed surged to the strongest level since Aug. 2009 while the statistics of long-term unemployed persons pointed to a decline. All sectors recorded growth in employment, with inflationary wage pressures reducing.
“It’s a strong report, there is no question about it. The labor market is improving at a seemingly stronger rate than before, the slack is being absorbed, we are chipping away,” Josh Feinman, a New York-based chief global economist at Deutsche Asset & Wealth Management told Reuters.
The average number of new workers absorbed per month stood at 231,000 in the first six months of the year, the highest level since 2006. The unemployment rate was also the lowest since September 2008, notwithstanding the expanding labor force.
However, the labor force participation rate, which represents the percentage of working-age citizens with a job or actively looking for one, remained stable at 62.8 percent. The number of Americans who wish to have a job but have quit looking for one and those on part-time jobs due to lack of full-time work plunged to 12.1 percent, the lowest since October 2008.
The jobless figure for Americans with no job for over 27 weeks plunged to 2.0 percent, again the lowest since February 2009. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.
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