WASHINGTON--U.S. job growth barely picked up in June, the latest
sign that economic growth has slowed.
Nonfarm payrolls grew by 80,000 last month, the Labor Department
said Friday. The politically important unemployment rate, obtained
by a separate survey of U.S. households, was unchanged at 8.2%.
Economists surveyed by Dow Jones Newswires had forecast a gain
of 100,000 in payrolls and the steady June jobless rate.
Polls show the economy consistently remains voters' top concern
before the November election.
Politically, the latest numbers won't help President Barack
Obama as he runs for reelection against Republican challenger Mitt
Romney.
The Romney campaign has repeatedly argued that Mr. Obama is
handling the economy poorly. The president has defended his jobs
record by saying the private sector is growing, but those gains are
muted by cuts among state and local governments.
Even with June's numbers coming in stronger than the previous
two months, the pace of job creation remains well below figures at
the start of the year--the economy added an average of 226,000 jobs
a month in the first quarter versus only 75,000 in the second
quarter.
May and April payroll numbers saw small revisions with little
net effect. Nonfarm payrolls increased by 77,000 in May, compared
with the previously reported 69,000, and April payrolls grew by
68,000 versus a previously reported 77,000.
The slowdown in hiring shows that, three years after the
recession's end, the economy has failed to gain traction amid broad
uncertainty related to Europe's debt crisis, the potential for
steep U.S. tax hikes and spending cuts next year, and signs of
slower growth in developing countries.
Federal Reserve officials last month lowered their economic
growth projections to between 1.9% and 2.4% this year, and forecast
the jobless rate will hold between 8.0% and 8.2%.
With more signs that the economy is losing momentum, the Fed
last month extended through the end of the year a program known as
"Operation Twist," which aims to drive down long-term interest
rates and reduce borrowing costs for businesses and households.
Fed Chairman Ben Bernanke made clear in a news conference after
the policy makers' June meeting that he is prepared to take further
action if he doesn't see progress on bringing down
unemployment.
The Labor Department Friday said private companies accounted for
all of the growth in June payrolls, adding 84,000 jobs during the
month. Governments, meanwhile, cut payrolls by 4,000. The federal
workforce shed 7,000 positions.
Employment increased 47,000 in the professional and business
services category, led by temporary help services. Companies
sometimes add temps before making permanent hires.
Manufacturing, a bright spot in an otherwise tepid recovery,
added 11,000 jobs. The pace of factory hiring has tailed off
markedly, though, to an average of 10,000 a month in the second
quarter from 41,000 a month in the first.
Health care and wholesale trade industries also added jobs.
Average earnings rose 6 cents to $23.50 an hour, while the
average workweek inched ahead by 0.1 hour to 34.5 hours.
A broader measure of unemployment--which includes job seekers as
well as those stuck in part-time jobs--rose to 14.9% in June from
14.8% the previous month.
The Labor Department's report can be found at
http://www.bls.gov/news.release/empsit.nr0.htm/.
Write to Jeffrey Sparshott at jeffrey.sparshott@dowjones.com and
Eric Morath t eric.morath@dowjones.com.
-Kristina Peterson contributed to this article.