The June jobs report will therefore take on even more importance than usual. Retail trade has added 313,000 jobs in the last 12 months.

Treasuries fell after a report showed the US economy added more jobs than forecast in June, bolstering the case for the Federal Reserve to raise interest rates this year.

The leisure and hospitality industry saw the most significant increase of new jobs at 59,000, followed closely by healthcare and financial industries.

On the wage front, the Labor Department said average hourly employee earnings rose by $0.02 to $25.61 in June after rising by $0.06 in May. Benchmark U.S. crude rose 35 cents to $45.50 while Brent crude, used to price worldwide oils, gained 34 cents at $46.74. This growth falls in line with average monthly gains over the past year in each industry, according to data from the Department of Labor.

USA stocks rallied on the employment data, with the main indexes rising more than 1 percent.

Though strong payrolls data would spark fresh speculation of a US rate increase later this year, it would also trigger a fresh round of currency weakness and likely policy tightening in emerging markets.

While the unemployment rate rose two-tenths of a percentage point to 4.9 per cent, that was because more people entered the labor force, a sign of confidence in the jobs market. The presumptive Republican presidential nominee had referred to May's weak jobs report as a "bombshell" but hasn't commented on Friday's report.

The hiring slowdown caught Federal Reserve officials off guard. CNNMoney's survey of economists projected only 177,000 job gains.

Marilyn Geewax, a senior business editor for NPR, says that after the negative shock of Brexit - Britain's June 23 vote to leave the European Union - the latest U.S.jobs report is providing reason to feel better about the economy. However, earnings were 2.6% higher compared with June a year ago, up from a rate of 2.5% in May.

That rise was mainly due to a large jump in the number of people reported rejoining the workforce, diluting the impact of the hiring surge on the jobless rate.

On that vein, it's worth noting that the Bureau of Labor Statistics estimates the pool of Americans who aren't counted in its employment and unemployment metrics shrunk by 191,000 last month. That sentiment signalled a shift from their April meeting, when many the policymakers had indicated that they were prepared to raise rates if the job market and the economy continued to improve. In June, job gains occurred in general merchandise stores (+9,000) and in health and personal care stores (+5,000).

But the recent hiring slump comes after the USA economy grew at a tepid 1.1 percent annual rate in the first three months of the year.

The Fed raised rates in December for the first time in almost a decade.


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