The unemployment rate ticked up to 3.7% in June from 3.6% for the previous two months, reflecting an influx of people seeking jobs who were initially counted as unemployed. Last month's burst of hiring suggests that many employers have shrugged off concerns about weaker global growth, President Donald Trump's trade wars and the waning benefits from U.S. But with June's gain, employers have added, on average, a solid 171,000 jobs for the past three months. June's solid job growth followed a tepid gain of 72,000 jobs in May, a result that had fueled concerns about the economy. Stock index futures fell and bond yields rose sharply.
Indeed, the initial reaction in the financial markets suggested increased uncertainty about Fed rate cuts.
Most investors have anticipated a rate cut in July and perhaps one or two additional Fed cuts later in the year. The strength of the jobs report the Labor Department issued Friday could complicate a decision for the Federal Reserve late this month on whether to cut interest rates to help support the economy. US employers sharply stepped up their hiring in June, adding a robust 224,000 jobs, an indication of the economy's durability after more than a decade of expansion.
