The United States Department of Labor announced Friday morning that 195,000 jobs were added in June, which was a greater increase than analysts have expected, leading many to think that the economy may truly be bouncing back.
The unemployment rate still hangs at 7.6% - making it ten straight months that the unemployment rate has been under 8%.
“The economy continues to show some momentum,” said Michelle Meyer, senior United States economist at Bank of America Merrill Lynch to The New York Times.
Wall Street analysts expected about 165,000 jobs to be created in the month of June – 30,000 shy of the true number of new positions. Analysts believe that this is an indicator of economic growth and stability, and that because of this, the Federal Reserve may begin withdrawing its stimulus efforts starting as early as September.
“There were notable employment increases in several sectors, including leisure and hospitality (+75,000), professional and business services (+53,000), retail trade (+37,000), and financial activities (+17,000, more than double its prior 12-month average),” said acting Labor Secretary Seth D. Harris in a press release.
“The June report also included upward revisions in total nonfarm payroll employment for April and May—a total of 70,000 more jobs than previously reported.
Job growth has largely been stifled by the drop in public employment. Though the private sector added 202,000 jobs, the public sector did away with 7,000 positions.
In addition, the underemployment rate – a measure of joblessness that includes people who have stopped looking for work and people who work part-time who would prefer to be working full-time, as well as those who are unemployed – rose from 13.8% to 14.3%. Involuntary part-time workers alone increased by 322,000 in the month of June.