The economy added 287,000 jobs - many more than economists had expected. But weak wage growth could keep the Fed at bay on interest rates. Fred Katayama reports.
Job growth in the U.S. rebounded strongly in June as manufacturing employment turned around. The economy added 287,000 jobs. That was far more than economists had expected. The unemployment rate increased to 4.9 percent as more people entered the work force seeking jobs. Sectors adding the most staff included healthcare, leisure and hospitality, and financial activities. And the return of 35,000 striking Verizon workers to the workforce boosted information-related jobs. Manufacturing added staff after cutting payrolls in May. Job losses were recorded in the transportation and mining sectors. The report wasn't all rosy. Jobs gains in May were revised lower, more than offsetting the April tally which was revised higher. And tepid wage growth of just one tenth percent could keep the Federal Reserve cautious about raising interest rates. Chief economist Curt Long of the National Association of Federal Credit Unions says the report won't change the central bank's timetable for hiking interest rates. SOUNDBITE: CURT LONG, CHIEF ECONOMIST, NATIONAL ASSOCIATION OF CREDIT UNIONS, (ENGLISH) SAYING: "It wasn't so strong it was going to tilt the Fed to raise rates faster than they might have otherwise." Stocks rose following the report.