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![The unemployment rate in June 2016 rose from 4.7 to 4.9 per cent, the US Labor Department said on Friday [Xinhua]](http://thebricspost.com/wp-content/uploads/2016/07/204224644_8-e1467988148725.jpg)
The unemployment rate in June 2016 rose from 4.7 to 4.9 per cent, the US Labor Department said on Friday [Xinhua]
Weighing heavily on the Fed’s decision will be the still unknown long-term effects of Brexit.
But the numbers for June released by the Department of Labor on Friday may be overshadowed by a closer look at payroll numbers for the entire second quarter.
For the past few months, the US economy had been adding an average 143,000 new payroll jobs every month compared to an average above 200,000 for much of 2015.
In fact, the Labor Department revised May’s figures lower to 11,000; some of the drastic drop in may was attributed to a walk-out strike by Verizon workers.
April’s payroll numbers were revised up to 144,000 from 123,000.
Last month, Fed chief Janet Yellen indicated that the fiscal policy would remain accommodative.
The Federal Open Market Committee first wanted to see signs that the US economy was showing robust growth and that new jobs were being created at an even pace before deciding on another rate hike.
In mid-June, Yellen admitted that recent economic data had been a mixed bag “suggesting our cautious approach to adjusting monetary policy remains appropriate”.
But she called on markets not to be pessimistic about the health of the US economy, particularly after the Labor Department’s lower-than-expected May job reports
The June numbers also reflect hiring trends before the Brexit referendum results came out.
According to Bloomberg, June payrolls were also inflated by the return to work of over 35,000 Verizon workers.
The BRICS Post with inputs from Agencies
