Washington — US jobs growth surged more than expected in June and employers increased hours for workers, signs of labour market strength that could keep the Federal Reserve on course for a third interest rate increase this year despite benign inflation. Nonfarm payrolls jumped by 222,000 jobs last month, the Labor Department said on Friday, beating economists’ expectations for a 179,000 gain. While the unemployment rate rose to 4.4% from a 16-year low of 4.3%, that was because more people were looking for work, a sign of confidence in the labour market. The jobless rate has dropped four-tenths of a percentage point this year and is near the most recent Fed median forecast for 2017. The average workweek increased to 34.5 hours from 34.4 hours in May. Labour market buoyancy could also encourage the US central bank to announce plans to start reducing its $4.2-trillion portfolio of Treasury bonds and mortgage-backed securities in September. The Fed raised its benchmark overnight interes...
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