The June jobs report will therefore take on even more importance than usual.
The Labour Department confirmed only 11,000 jobs were created in May, a revision well down on the 38,000 figure previously reported.
The number of foreign-born people employed in the United States reached another record high in June, according to new figures released Friday by the Bureau of Labor Statistics.
However, the healthcare sector added most of the new jobs in that time (46,000) as a result of ambulatory services gaining 24,000, hospitals 17,000, and nursing care facilities 5,000.
Economists polled by MarketWatch had forecast a 170,000 increase in new nonfarm jobs, an estimate that included about 35,000 Verizon employees returning to work after a prolonged strike. They increase just 2 cents, after rising 6 cents in May, and average hourly earnings have risen 2.6 percent over the a year ago. That would be a massive rebound from May when the US added a mere 38,000 jobs. This growth falls in line with average monthly gains over the a year ago in each industry, according to data from the Department of Labor.
USA market futures jumped on the report.
The unemployment rate rose to 4.9% from 4.7% as about 400,000 Americans streamed into the labor force, including discouraged workers who had stopped looking for jobs, the Labor Department said Friday. In the past 12 months, they have risen 2.6 per cent, the best year-over-year reading since December.
The May data with a much lower than expected employment increase cast major doubts on the U.S. labour-market trends and also caused consternation within the Federal Reserve. Job growth is "obviously not as booming as we were seeing over much of the last few years, which was probably unsustainable".
Factories increased payrolls by 14,000 after a 16,000 decline the month before, the latest indication that the industry is stabilizing after damage wrought previous year by a strengthening dollar and plunging oil prices.
How long will the Federal Reserve delay its next interest rate hike?
The tightening labor market appears to be putting pressure on companies to pay more in salaries, a good thing for workers.
"People are starting to come off the bench and apply for jobs, so that causes an uptick in the unemployment rate", Marilyn said. At 2.0 million, the number of long-term unemployed (those jobless for 27 weeks or more) changed little in June and accounted for 25.8 percent of the unemployed. That rapid pace of job gains has slowed in 2016.
That sentiment signaled a shift from their April meeting, when many Fed policymakers had indicated that they were prepared to raise rates as soon as June if the job market and the economy continued to improve. "Although the rate of private-sector job openings remained elevated, the rate of hires declined in both March and April and the rate of quits was unchanged".