U.S. employers added 195,000 jobs in June, which is more than what they previously expected. The job growth suggests a stronger economy and means the Federal Reserve could slow its bond purchases as early as September.
The unemployment rate remained 7.6 percent due to more people looking for jobs. The government doesn’t count people as unemployed unless they’re looking for work.
According to an article on Associated Press, June’s job gain was fueled by consumer spending and the housing recovery. Consumer confidence has reached a 5 1/2 year high and is helping drive up sales of homes and cars. Hiring was especially strong in June among retailers, hotels, restaurants, construction companies and financial services firm.
Further job growth could lower unemployment and help the economy rebound after a weak start this year. If so, the Feds would likely scale back its bond purchases later this year.