US job growth was on a major upturn in June as there was a boost in hiring. The first quarter showed a lull and now the economy looks like it’s heading back up. The Federal Reserve will probably not raise interest rates soon.
Payrolls in the nonfarm sector increased by 287,000 jobs last month. This is the largest gain we’ve seen since last October according to the Labor Department. These signs of strength came, however, before the Brexit vote on June 23, raising fears that these great advances may not continue.
As Millan Mulraine, the deputy chief economist at TD Securities in New York said, “For the Fed, this report is likely to offer some encouragement on the underlying labor market backdrop, though it is unlikely to change the current ‘wait and see’ policy stance as they assess the fallout from the Brexit vote.”