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Economy Adds 287,000 Jobs In June

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Job growth rose during the month of June with 287,000 new jobs, according to the June jobs report.

Almost one-third of all new jobs came from the hospitality and food industries. Leisure and hospitality added 59,000 jobs, according to the Bureau of Labor Statistics, while eating and drinking venues added 22,000. Other industries with impressive job growth were retail, which added 30,000 jobs, and the health care and social assistance industry, with 58,000 new jobs.

But average job growth over the past three months has been only 147,000 which is down from 2015.

“Despite the positive report, it’s also apparent that the overall pace of job creation has slowed in the past several quarters,” Jim Baird, chief investment officer at Plante Moran Financial Advisors, told MarketWatch.

"There's been a significant loss of momentum from the end of last year," said Lindsey Piegza, chief economist at Stifel Nicolaus, according to CNN. "The slower pace of the job creation matches the reduced pace of the economy."

Economists also said a slower economy and a labor market unable to find skilled workers can also be to blame. In fact, unemployment actually rose slightly to 4.9 percent. But the 287,000 new jobs is a vast improvement over May, when the U.S. economy added a mere 11,000 jobs.

And with a great deal of new jobs in the lower-paying industries like hospitality and retail, wages have remained low.

The current average hourly pay is $25.61, which is .01 percent higher than the previous month. Nonetheless, the job growth was enough to stave off a potential recession, at least for now.

“This report should ease any fears that a persistent slowdown or recession is coming soon in the U.S.,” said Dean Maki, chief economist at Point72 Asset Management, according to The New York Times. “The service sector is where the real strength is, with 256,000 hires. But the gains were widespread across sectors.”

Sources: Bureau of Labor Statistics, MarketWatch, CNN, The New York Times / Photo credit: Walmart/Flickr

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